BCR registers 47 per cent profits

Rwanda Commercial Bank (BCR) last year recorded an overall growth in its business performance. The bank’s profit after taxation hit 47 per cent growth mark from Frw2.1 billion in 2006 to Frw3.1 billion last year. Total assets and total revenues also increased by 37 per cent and 42 per cent respectively. Assets grew from Frw74 billion in 2006 to Frw101 billion in 2007 while its turnover increased from Frw8.4 billion to Frw10.9 billion. The biggest contributor to BCR’s revenue growth was the interest on loans that fetched Frw6 billion. Revenue from government securities was Frw44 million while interest on placement and lease was Frw899 million and 602 million respectively. “The leasing business has now expanded into business banking thus transferring the good practices to our management of small and medium enterprises generally,” said Nkosana Moyo, BCR’s chairman. He largely attributed the bank’s healthy business to the general growth of the Rwandan economy last year. The country registered Gross Domestic Product (GDP) growth rate of 6 per cent. Headline inflation was also maintained at 6.6 per cent while underlying inflation was 10.6 per cent. The monetary policy statement released recently by the National Bank of Rwanda (BNR) indicated that commercial banks’ activities grew by 43 per cent and that strong growth of credit to the private sector of 26.6 per cent. They also said that the bank is run professionally and has managed to integrate into the Rwandan market easily. BCR, which also claims the country’s second largest market share (27 per cent to 30 per cent) after Bank of Kigali is planning to reduce congestion in all its branches countrywide by opening up more branches, promoting ATM use and electronic banking. David Kuwana, BCR’s managing director said new branches in Rwamagana and Nyamirambo have already been completed and are due to be opened in the first quarter of 2008. They are planning to open more branches in Nyanza, Gitarama and Bugarama. The bank announced that it’s retail banking division expanded by 82 per cent and retail lending grew by 50 per cent over the year with Non Performing Loans (NPL’s) remaining at acceptable levels. The chairman said corporate banking business continued to grow during the year. And the bank’s agriculture portfolio grew 100 per cent—supported by Development Credit Authority- DCA a guarantee fund by USAID. Ends