Zigama Credit and Savings Bank made a Rwf9.4 billion net profit during the last twelve months, surpassing its target of Rwf6.3 billion, it has said.

 The figures were reported at the bank’s general assembly held yesterday at the Ministry of Defence headquarters in Kimihurura, Gasabo District.

Addressing the media after the assembly, Maj. Gen. Albert Murasira, the bank’s managing director, attributed the profit to the bank’s good management and commitment of its staff.

"Zigama is a little bit special compared to other banks. We have our special management and, as we have witnessed, we try to minimise expenses and maximise profit,” he said.

Murasira attributed the growth in profits to the wise bank’s operations, especially in buying treasury bonds and bills, as well as giving out loans to members.

By the end of December 2017, the bank had issued over Rwf145 billion in loans to 140,000 members.

At least Rwf84 billion was issued in loans in 2017 alone.

So far, over 90 per cent of the members can get loans at a 13-per-cent interest rate, while the non-members (only 10 per cent) are allowed to get loans at a 15 per cent interest rate.

"The low interest rate does not stop us from making profits because all the banking services that normally raise the costs of other banks, like ICT services, are done by the members,” Murasira said.

This year, the bank targets a profit of Rwf 8 billion, an amount Muramira and other officials believe can even be surpassed.

"Our priority is not just to make profits but to help improve the welfare of the members,” he said.

The bank also plans to increase e-banking services in a bid to provide better and faster service delivery.

Three years ago, 94 per cent of the banking transactions were being done by cashiers while e-banking was only contributing 6 per cent, but the bank has made significant progress in reducing tellers’ tasks by digitalising more of its services, officials said.

Dr James Ndahiro, the chairman of the bank’s board of directors, hailed the impressive performance.

"My impression is that this is one of the banks with the lowest default rates due to the discipline among members.  I want this to continue as we are also looking at making sure our clients access banking services wherever they are,” he said.

Zigama CSS has over 80,000 members. The members are from Rwanda Defence Forces, Rwanda Correctional Service, and Rwanda National Police.

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