KCB Rwanda breaks-even in 1st Quarter

After two years of successive operating loses, KCB Rwanda, a subsidiary of Kenya Commercial Bank (KCB) Group posted a modest profit in the first quarter of 2011 on account of a strong growth in customer deposits. According to its financial report, KCB Rwanda recorded a Rwf54m profit in the period ending March 31, 2011 compared to a loss of Rwf740.9m in the same period last year. Management attributed the results to cost cutting measures and income growth over the past one year. “This was due to a strong growth in the customer deposits resulting from continued growth in our client base,” the bank said in a statement. Its balance sheet grew by 104 percent to Rwf45b, up from Rwf22b as client deposits jumped to by 139 percent from Rwf12.8b, the statement said. “Since the beginning of March, we are currently lending about Rwf1.5b new mortgages that we are processing in various stages of development and in addition to what we already had, its about Rwf2.5b,” the Bank’s Managing Director, Maurice K. Toroitich, said in a recent interview with Business Times. KBC Rwanda launched its mortgage financing business early this year with a financial outlay of Rwf7b. The product is expected to address the high housing deficit in the country. Rwanda needs between 20,000 and 25,000 residential houses every year, however, only about 300 are provided. We have steadily invested strongly in products and services that add value to our customers,” the statement reads. The bank said that the growth in income stream is testimony to continued confidence by customers who have continued to take advantage of its banking services. KCB Rwanda had reported a loss of Rwf1.2 billion in 2010, which was about 25 percent lower than the previous year. Ends

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KCB Rwanda breaks-even in 1st Quarter