KCB targets to break-even in first quarter

KCB Bank Rwanda, a subsidiary of Kenya Commercial Bank (KCB) Group, is projecting to break-even in the first quarter of the financial year 2011, when it releases the results, management said. KCB Bank Rwanda Managing Director, Maurice K. Toroitich, said in an exclusive interview with the Business Times that according to first quarter results, which are currently under audit review, the bank will make a surprising break-evenRecently the bank received a Rwf3.9 billion (Sh557 million) cash boost from its parent company to restore growth. “Our Q1 results have been very positive far more different from our Q1 2010 performance in terms of revenue, we have also maintained our cost line. As a result, we anticipant that the bank’s Q1 results for2011, are going to come close to break-even if not break-even,” he explained. Recently, the bank also announced that its balance sheet grew to US$50 million (Rwf29.6 billion), almost two folds higher than Rwf15 billion at the end of 2009. Toroitich said the performance is in line with the bank’s projection as indicated in its latest financials. KCB Bank Rwanda financial statements for 2010 indicate that the bank’s performance since 2009, has been improving quite substantially. The bank reported a loss of Rwf1.2 billion for 2010, which was about 25 percent lower than the previous year.Management attributed the results to cost cutting measures and income growth over the past one year. Toroitich also announced that the bank’s retail book stands at four percent. This week, through the World Bank, IFC will grant KCB Bank Rwanda USD$5 million to support its mortgage business.Toroitich said their mortgage book was still very young. “Since the beginning of March, we are currently lending about Rwf1.5 billion new mortgages that we are processing in various stages of development and in addition to what we already had, its about Rwf2.5 billion,” he announcedHe added that the mortgage industry in Rwanda is possibly worth between Rwf90 and Rwf100 billion which by any standard is very small. Ends

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KCB targets to break-even in first quarter