The Development Bank of Rwanda (BRD) has shown resilience to the current global economic downturn by registering Rwf1.4 billion in net profit in first half 2009 up from Rwf752m registered in whole year in 2008.

The bank’s audited financial statements also showed that net interest income increased by 55.4 percent from Rwf916m last year to Rwf1. 4 this year.

Jack Kayonga, the acting Managing Director of BRD attribute the 89.2 percent gain in net profit to robust appraisal services that have led to efficiency in service delivery.

"This is extremely humbling for us to double profit in just six months. Increasing profitability is subject to many things related to running the business efficiently that has resulted into growth of the Bank’s portfolio and income,” Kayonga said.

The bank’s ability to recover loans also had a hand in increasing its profitability.

Non-performing loans, which reflect loans in default or close to being in default, reduced by 21 percent from Rwf2.3 billion last year to Rwf1836 million in six months this year.

By having a strong monitoring function beginning from the disbursement level to avoid any short falls as per the financing plan and monitoring implementation of the project at least monthly  Kayonga said , has also facilitated the bank to become more profitable.

On the operating basis, BRD registered an increase in expenses that rose by 8.3 percent from last year due to recruitment of new staff, remuneration and renovation of the bank’s Head offices.

However the newly established commercial courts are also facilitating the good performance of BRD.

"The efficiency of the commercial courts now is improving on the way they are doing things. Not only on the decisions made in court but also it has reduced on the moral hazard that they have heard because they knew that the courts were taking their time for closure on bad debtors,” Kayonga said.

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