Kenya Commercial Bank (KCB ) Rwanda’ s customer deposits have grown by 34.5 percent in the last 9 months from Rwf113million to Rwf4.45billion, according to the bank’s latest quarterly financial report.
The bank’s total assets in the period under review have also gone up by 65 percent from Rwf6billion to Rwf10billion.
The bank says that the last months have been characterized by heavy investment in building business infrastructure, staffing and training to improve their capacities to manage the business and risk elements of the expanded operations.
Over the nine months of this year, the bank has expanded rapidly from one branch at the beginning of the year to 9 branches by the end of September of this year.
The bank has also just concluded implementation of a new banking software linking Rwandan customers with its sister banks in the region.
“These are very aggressive and expensive initiatives that we have under taken in order to rapidly position the bank to offer globally competitive service,” a statement by the bank released on Monday reads in part.
KCB, part of Kenyan own KCB Group commenced banking operations in December last year.
“We are very pleased about the growth of our customer base and we are optimistic that with this level of continued support and enthusiasm in our brand, our competition is now well grounded,” the statement said.
However, the bank incurred more losses registering a net loss of Rwf879.2 million in 9 months from Rwf381.4 million incurred in the first semester of this year, translating into an increase of 130 percent.
The bank attributes the losses to high start up expenses as a result of green-field banking operations upon entry in the Rwandan market.
“The bank is still operating at a loss and we anticipate that 2009 will close at an overall net loss position. The anticipated loss position for year 2009 nevertheless is well within our expectations and budgetary provisions.”
The bank’s net interest income in nine months is at Rwf302million, as interest expenses are at Rwf8 million.
While the bank has not yet issued significant credit with no records of non-performing loans, it has commenced lending with advances and loans to customers amounting to Rwf1.2billion from Rwf291.2 million disbursed in the first semester.
“While we expect the year 2010 to be much stronger in terms of revenues, we also are aware of the fact that the cost of our operations will be at its peak,” the bank says, pointing out that its projections for overall profitability remain as originally planned for the year 2011.
KCB now operates 4 fully fledged branches in Kigali and one branch in the districts of Rubavu, Huye, Muhanga, Musanze and Rusizi.