KCB posts Rwf2b loss

Kenya Commercial Bank (KCB) Rwanda, a subsidiary of Kenya’s KCB Group posted a Rwf2 billion (KSh318 million) loss in 2010 but said it is set to breakeven this year. The Bank attributed the loss to high start-up costs following the launch of its Rwandan operations two years ago. The Bank also said that its balance sheet grew to US$50 million (Rwf29.6 billion), almost two folds higher than Rwf15 million at the end of 2009. KCB Rwanda received a Rwf3.9 billion (Sh557 million) cash boost from its parent company to restore growth.Managing Director of KCB Rwanda, Maurice K. Toroitich, told Business Times on Tuesday that the group decided to inject the money not only in the Rwandan subsidiary but also in Uganda and Tanzania to support their growth prospects. “The money will be used to recapitalise our position in the banking sector in the country,” Toroitich told Business Times in a phone interview. In the scheme approved by the group board on Monday, KCB Uganda will receive (Rwf7.7 billion) Sh1.1 billion while Tanzania would get (Rwf1.5 billion) Sh225 million. Toroitich further said the money would increase the capacity of the bank to do more business in the country especially in the SMEs, Micro-banking, and the recently launched new mortgage facility plus other sectors.The group also announced it was suspending branch expansion drive to maximise profits in its operations. The bank operates 218 branches and over 340 ATMs across the region. Ends

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KCB posts Rwf2b loss