Bank of Kigali’s net income dropped to Rwf1.9b in the third quarter of the year, a decline of 0.4 per cent in the same period last year after a significant rise in operating expenses, mainly staff costs, the bank’s audited quarterly financial results have shown.
Bank of Kigali’s net income dropped to Rwf1.9b in the third quarter of the year, a decline of 0.4 per cent in the same period last year after a significant rise in operating expenses, mainly staff costs, the bank’s audited quarterly financial results have shown.
The lender’s year-on-year costs increased by 45.9 per cent, driven mainly by high personnel costs and other operating expenses.
However, the bank’s Managing Director, James Gatera, remained optimistic saying that: "We continued growing our balance sheet and as a result managed to significantly increase our market share by total assets from 27.4 per cent at year end to 33.4 per cent as at September 30, 2011. Overall I am very pleased with our year-to-date results and performance.”
The lender’s loan book grew by 12.6 per cent to Rwf125b in the nine months to September, reflecting the economy’s increasing demand for credit, particularly for Small and Medium Enterprises (SMEs) financing.
Central bank statistics show that new authorised loans reached Rwf239.4b as of September this year compared to Rwf192.7b in 2010.
Credit to the private sector is expected to grow above 30 per cent by the end of the year much higher than central bank’s initial projection of 19.2 per cent.
However, banks’ credit is mainly concentrated in the commercial and hotel sectors which account for 33.70 per cent followed by the mortgage industry at 27.38 per cent, transport and warehousing at 10.31 per cent. Other areas include non-classified activities which carry 9.64 percent and manufacturing set at 9.28 percent.
BK, which is Rwanda’s leading bank by assets said that its deposits expanded by 2 per cent to Rwf172b.