Bank of Kigali (BK) defied the odds that plagued the financial sector last year to register a stellar performance despite poor industry showing. The institution recorded a 25.4 per cent increase in net profits last year, the bank’s financial statement released on Wednesday indicates. According to James Gatera, the Bank of Kigali chief executive officer, the bank’s performance represents 65 per cent of the sector’s total profits last year, up from 43 per cent (financial sector profits) the previous year. Gatera attributed the good performance to the significant investments aimed at delivering innovative and inclusive financial services for customers across the bank’s distribution channels. “Our share in the sector’s profits increased from 43 to 65 per cent in 2013, “which shows that we are working hard to strengthen our presence here and in the region”. Gatera noted that the bank seeks to grow its loan book this year by mobilising more deposits and additional long-term loans. “This will complement our deposit base and enable us to continue providing long-term financing to the private sector,” he said. The firm’s net income stood at Rwf14.8b, an increase compared to the Rwf11.8b recorded in 2012. Total assets grew by 30.9 per cent last year to Rwf422.4b from Rwf322.8b the previous year. Return on average equity went up to 22.1 from 18.9 per cent, while net interest margin was at 11.1 per cent, up from 9.6 per cent respectively in 2012. As regards the bank’s efficiency, the cost to income ratio went down to 48.3 per cent last year from 53.1 per cent in 2012. According to the financial statement, client balances and deposits expanded to Rwf280.5b last year from Rwf211.9b in 2012. Net loans stood at Rwf199b, up from Rwf185.1b the previous year. Gatera said the bank issued loans at interest rates ranging 16-18 per cent, depending on the level of risk. He noted that the bank would focus on small-and-medium enterprise lending this year to spur the country’s growth. The local financial sector is made of 10 commercial banks, four micro-finance banks, one development bank and one co-operative bank. Commercial banks account for 78.6 per cent of the sector’s total assets.
