Bank of Kigali, Rwanda’s largest lender by total assets saw its profit after tax income increase to Rwf5.3 billion during the first three months of 2016, according to the Bank’s financial statement released on Monday.
The Bank’s profit before tax was Rwf7.7 billion which represents an increase of 40.4 per cent from the previous quarter.
However, the period also marked the end of Bank of Kigali’s tax holiday of 20 per cent on corporate tax which it had legally enjoyed for the last five years since listing on the stock exchange in 2011.
The development means the lender will now be paying the full 30 per cent rate on corporate tax instead of the 10 percent it has been paying in the last five years.
The news also means that the Bank will be paying more taxes to the treasury which is likely to boost domestic tax collection in coming fiscal periods.
However, Nathalie Mpaka, Bank of Kigali’s Chief Finance Officer, said the return to paying the full 30 percent corporate income tax rate will not hurt the lender’s performance and profitability.
During a press conference on Monday, Mpaka revealed that the Bank’s total assets grew by 3.5 percent, during the period under review, to Rwf580billion up from Rwf561billion recorded in the last quarter of 2015 and Rwf498billion same period of the year before.
Mpaka added that the Bank’s Return on Shareholder’s Equity also grew by 10.1 per cent from last year to net Rwf104.6 billion in the first three months of this year.
The Loan portfolio of the Bank also surged with net loans rising by 37.2 percent to Rwf346.1 billion.
Dr. Diane Karusisi, Bank of Kigali’s Chief Executive Officer attributed the lender’s good performance to increased confidence from clients and shareholders.
“As the largest Bank in the market, we remain committed to support economic growth by offering world class services,” she noted.
Dr. Karusisi re-assured on the Bank’s commitment to continue availing more innovative and affordable products that will enhance access to credit while boosting financial inclusion.
Overall, the Bank served more than 340,155 retail customers and 31,192 corporate clients in the period under review while its agency banking network expanded and processed over 210,000 transactions worth Rwf14.2 billion.
Equally, MobiServe users grew to 285, 287 up from 242,041 same quarter, last year, according to Lawson Naibo, the Bank’s Chief Operating Officer adding that 60 per cent of the transactions were through digital devices.
“Technology is helping people transact businesses easily and as we move towards the cashless economy, the quality of trade is transforming,” said Naibo.
On the share price, Naibo maintained that the current rate, which the Bank has maintained, results from its competitiveness on the market.
“If you look at other shares on the market, they have been fluctuating, but the fact the BK shares have remained constant for a while is to give a chance for customers to plan well and acquire more shares, of course the dividends are attractive too,” he added.