KCB Bank Rwanda pre-tax profits surge to 3.2bn in 2015

KCB bank Rwanda Ltd pretax profits increased by 165 per cent from Rwf857million in 2014 to Rwf3.2billion in 2015, the Bank’s financial statements have indicated. This marks the third year of consistent growth and profitability reported by the bank. Pretax profit margin is a companys (Bank) earnings before tax as a percentage of total sales or revenues. The higher the pre-tax profit margin, the more profitable the company. The Bank’s total operating income increased by 28 per cent sustained by a 35 per cent increase in Net Interest Income. The impressive growth was also attributed to increased lending activity in 2015. For example, the Bank’s total assets increased by 23 per cent to reach Rwf149 million up from Rwf121 million in 2015. This increase was highly driven by an increase in customer deposits which increased by 14 per cent in 2015 and a rise in the Bank’s external long term funding sources which increased by 34 per cent. The Bank reported a 38 per cent decrease in net impairment for financial assets which indicates a significant improvement in the quality of its loan book. Maurice Toroitich, the Bank’s Managing Director, noted that the growth is a reflection of the significant efforts to improve innovation and product efficiency. It is also our commitment to meet customers’ needs in the most efficient and innovative way, he said. “The bank has made significant strides in offering solutions that address various needs in trade and Commerce, Manufacturing, Infrastructure, Agri-business and Housing”, Toroitich said adding that the bank has significantly stepped up operations in supporting SME’s in all sectors of the economy. KCB Bank Rwanda Ltd is a 100 per cent subsidiary of KCB Group Ltd, a company that is quoted in the Nairobi Stock Exchange and cross listed in the Uganda, Rwanda and Tanzania stock exchanges. The Group operates in all the 6 EAC countries (including South Sudan) and has a representative office in Ethiopia. Recently, KCB Group Ltd reported a 16.5% increase in net earnings from $ 165 million to $192 million. editorial@newtimes.co.rw

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KCB Bank Rwanda pre-tax profits surge to 3.2bn in 2015