KCB Bank Rwanda has recorded a 162 per cent rise in half year pre-tax profit, growing from Rwf503 million in June last year to Rwf1.32 billion.
According to a financial statement from the bank, net profit grew from Rwf323 million to Rwf868.7 million during the period, while its total assets grew by 37 per cent to Rwf140 billion from Rwf102 billion.
Maurice Toroitich, the KCB Bank Rwanda managing director, attributed the strong growth to increased customer deposits and funds from international financial institutions that enabled the bank to extend long-term loans to the private sector.
“During the first half of the year, we launched new products and revamped existing ones in order to match our banking solutions to the growing needs of customers. This has contributed to a greater uptake of our products and services,” explained Toroitich in an interview last week.
He said customer deposits grew by 25 per cent, from Rwf78 billion last year to Rwf98 billion, while long-term borrowing increased by 72 per cent, from Rwf3 billion in June 2014 to Rwf10 billion this year.
The increase in the customer deposit base and acquisition of external resources enabled the bank to expand its lending during the period, with loans and advances to customers growing by 44 per cent to Rwf78 billion from Rwf54.5 billion last year.
The surge in the bank’s loan portfolio and investment in the money market led to an increase in net interest income of 27 per cent from Rwf2.8 billion to Rwf3.5 billion, Toroitich said.
Meanwhile, the bank’s fees and commissions increased by 25 per cent. The bank’s operating expenses increased by a modest 9 per cent.
Overall, net operating income increased by 26 per cent to reach Rwf5.8 billion during the period.
“The growth in fees and commissions is as a result of increased lending and normal trade and capital market related money transfer operations,” said Toroitich.