BRD registers 92pc after tax profit

Rwanda Development Bank (BRD) posted a record 92.8 percent growth in profits after tax that is equivalent to Rwf2.7 billion in the 2011 financial year, compared to the previous year.According to its Chief Executive Officer (CEO), Jack Kayonga, 2011 was the lender’s best year in recent past.“The bank managed to record a net profit of Rwf2.7 billion, last year, compared to Rwf1.4 billion registered in 2010 owing to the economic environment in the country and the continued government support,” Kayonga told Business Times.He explained that the healthy growth is an indication of the restructuring process the bank has been undergoing for the last three years that has begun yielding fruits. The bank projects to post Rwf4 billion profits after tax in 2012. To achieve that, the lender plans to launch new products, closely monitor projects and cut costs, he added.Its current Non Performing Loans (NPL) stands at 8 per cent, as of December last year, down from 13 per cent the previous year. The central bank requires a maximum of 7 per cent.The bank’s board Chairman, Fabien Majoro, announced that the lender’s net interest income increased by 61 per cent, loan portfolio grew by 425 per cent while the deposit income registered 85 per cent in growth. Majoro noted that during the past year, BRD continued to implement its mandate as the financing arm of the government approving 219 loans that amount to Rwf31.5 billion.This represents 18 per cent growth from the previous year.“The year ended with the lender’s loan book growing by 42 per cent to Rwf66 billion, from Rwf45 billion the previous year,” Majoro explained.Last year, BRD took over the former Rwanda Housing Bank (BHR) to promote the mortgage industry in the country. The takeover aimed at transforming the lender into a mortgage financing facility.

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BRD registers 92pc after tax profit