BK profits drop 7%

Bank of Kigali (BK) has recorded a plunge in its total earnings for 2009 at the back of the global financial crisis. 
BK head office in Kigali
BK head office in Kigali

Bank of Kigali (BK) has recorded a plunge in its total earnings for 2009 at the back of the global financial crisis.

The bank’s financial results, which were released on Monday, showed that its total earnings dwindled by 7 percent to Rwf5.2 billion from Rwf5.6 billion in the previous year.

Despite the global financial crisis coupled with the liquidity crunch in the local banking system, the bank said that it managed to be the best performing financial institution in the country, accounting for 70 percent of the net profit by all commercial banks operating in Rwanda. 

“With a strong footing, the good work of a well managed and organised team of employees, loyal clients and increased good number of products we managed to achieve what we did,” James Gatera, BK’s managing director said during a press conference at the bank’s headquarters in Kigali.

On Monday BK also launched SMS banking, its latest product on the market, that allows its clients to request and receive banking information using their mobile phone handsets.

The managing director explained that service will help the bank’s clients pay electricity bills while at home using their mobile phones.

Bk said it plans, in the next 12 months, to consolidate its leadership position within Rwanda’s banking industry by expanding its branch network to 30 from 18 last year.

“This year we are planning to increase our branch network all over the country, introduce 40 Automated Teller Machine (ATM) as we continue to strengthen our position as the leading commercial bank in the country,” he said.

He also added that the bank is targeting Rwf6 billion profit after tax this year with projections to double its clientele base.

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