Kenya commercial Bank (KCB) reported a pretax loss of Rwf367m in 2012 owing to increased operating expenses which went up by 28 per cent.
Kenya commercial Bank (KCB) reported a pretax loss of Rwf367m in 2012 owing to increased operating expenses which went up by 28 per cent.The loss reflected a setback to the bank’s desire for stability in a highly competitive banking sector, represented by fluctuating performance since its entry in Rwanda in 2008.The bank made a net loss of Rwf1.7b in 2010, but had bounced back the following year with a net profit of Rwf475m.The bank is, however, optimistic that while the loss made last year is disappointing, its additional capacity will generate strong return in the years ahead."The loss was due to operating expenses related to continued investments in new branches and facilities, as well as staff-related costs and other administrative expenses which all increased substantially during the period coupled with additional provisions raised against non-performing loans that came under stress,” Morris Toroitich, told Business Times."In 2012, we expected to sustain the growth momentum that we have established since inception in 2008. We grew our balance sheet by 13 per cent because of growth in customer deposits. "Loans and advances also increased by 24 per cent, reflecting a strong demand in the market for credit.”The bank’s total active customer base is over 75,000 from 58,000 in 2011, representing seven per cent of the total market."The measure of our future growth and success is not only going to be in terms of balance sheet size, but on whether we are able to satisfy customers needs. We will, however, continue to grow our market share because in banking size matters,” Toroitich added.
-------------------------------------------------
CorrectionIn yesterday’s article, "IMF tips on reducing donor aid dependence”, we erroneously reported that funds raised from the impending bond issue would finance the completion of Kigali City Tower. Part of the money will fund completion of the Kigali Conventional Centre NOT the City Tower as reported. We regret the error. The New Times strives to give accurate and balanced reports.