KCB Bank pre-tax profit surges to Rwf2.5 billion

KCB Bank Rwanda profit before tax surged to Rwf2.5 billion in the first nine months of the year, from Rwf310 million during the same period last year, an increase of over 100 per cent, the bank’s financial statement indicates. According to the statement released last week, the bank’s total assets grew by 36 per cent to Rwf154 billion, up from Rwf113 billion in 2014, driven by a strong growth in customer deposits and long-term borrowing that supported long-term lending. Growth in customer deposit base and acquisition of external resources enabled the bank to significantly expand its local lending operations during the period with loans and advances to customers growing by 35 per cent to Rwf84 billion, it added. Maurice Toroitich, the bank’s managing director, said the lender’s performance was driven by an overall growth in the its business activity, “particularly, in lending and transactional operations, supported by strong cost containment and improved loan asset quality”. “We continue to increase our product offering to customers, leveraging on our infrastructure and additional investments, especially in products geared toward promoting a cashless economy and increasing access financial services,” Toroitich, said in the statement. Customer deposits grew by 45 per cent from Rwf96 billion to Rwf139 billion, while long-term borrowing increased by 100 per cent from Rwf6 billion in September 2014 to Rwf12 billion. The increased profitability pushed the net shareholder funds by 23 per cent from Rwf10.5 billion to Rwf13 billion. Toroitich said the bank ensures consistence to meet the needs of clients to help them achieve their goals. Meanwhile, a surge in the bank’s loan portfolio and investment in money market led to an increase in net interest income by 31 per cent from Rwf4.2 billion to Rwf5.6 billion. The bank’s fees and commissions rose by 23 per cent, from Rwf2.5 billion to Rwf3 billion, while operating expenses were up 12 per cent. Overall, net operating income expanded by 44 per cent to Rwf9.6 billion during the reporting period.

News

KCB Bank pre-tax profit surges to Rwf2.5 billion