KCB Rwanda projects profit surge

KCB Rwanda is projecting a surge in net profit for the third quarter of 2011, compared to a net loss in the same period last year, according to the bank’s management. The subsidiary of Kenya’s KCB Group has maintained the good performance in its third year of operations after breaking-even in quarter one, following two years of operating losses, that are attributed to startup costs. Maurice K. Toroitich, KCB Rwanda’s Managing Director, told Business Times that, according to preliminary results – which are yet to be approved by the bank’s Board –, the lender will be posting “a very big profit margin”. “We have continued the profit status since the beginning of this year, and quarter three results will be much stronger than any quarter, this year,” Toroitich explained. In the first quarter of this year, KCB Rwanda posted Rwf54 million profit on account of strong growth in customer deposit. KCB Rwanda further reported a net profit of Rwf34m in quarter two of this year. Last year, the bank reported a net loss of Rwf2 billion, owing to high start-up costs. Toroitich further explained that the bank’s new fortunes (making profits) is attributed to substantial business growth over the year. “Our fees and commissions have increased because of the growing clientele base, strongly contributing to the bank’s growth,” Toroitich noted. He further added that their mortgage product has substatially contributed to their latest profits, but declined to disclose the actual figures before the official release of quarter three financial report. Toroitich also attributed the growth to the expansion of the bank’s loan book, adding that currently its Non-Performing Loans (NPL) stand at 6 percent. Ends

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KCB Rwanda projects profit surge