KCB Bank Rwanda operating income up to Rwf14.7bn

KCB Bank Rwanda total operating income increased by 7 per cent to Rwf14.7 billion last year compared to Rwf13.7 billion in 2015, the bank’s financial report indicates.

KCB Bank Rwanda total operating income increased by 7 per cent to Rwf14.7 billion last year compared to Rwf13.7 billion in 2015, the bank’s financial report indicates.

The bank’s non-performing loans ratio, however, rose to 7 per cent in 2016 from 2.9 per cent in 2015, while its assets declined by one per cent “due to a reduction in deposits, a deliberate strategy to manage cost of funds and provide better efficiency in customer funding,” according to Maurice Toroitich, the KCB Bank Rwanda managing director, said.

“It is encouraging that the bank’s operating income grew last year in spite of a challenging global and local macro-economic environment,” he added.

Challenges in the global economy impacted economic growth in Rwanda, he said, adding that slowdown of China’s economy led to a drop in global commodity prices, which in turn affected various loan portfolios within the bank’s corporate and SME market segments.

He attributed growth of lender’s operating income in 2016 to increase in the loan book to Rwf93.6 billion in 2016, up from Rwf90.6 billion in 2015, indicating a 4 per cent growth rate. Investments in manufacturing and construction were the key drivers in the bank’s credit strategy.

Toroitich added that the firm’s bottom line performance was affected by costs which rose by 11 per cent, mainly attributed to rising staff costs and technology.

“The bank made considerable investments in financial technology, manifesting in several advancements in both mobile and Internet-based platforms. However, these investments will substantially reduce operational costs currently incurred through traditional banking channels over the long-run,” Toroitich said.

KCB remains committed to delivering quality services in the three vital areas of investments, payments and savings for customers, he said, noting that the acquisition of new and simplified banking channels was part of the bank’s long-term growth strategy.

 

 

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