BRD profits up 20%

Rwanda Development Bank (BRD) last week announced an increase in net profits, from Rwf1.2b in 2009 to Rwf1.5b in 2010. The bank attributed the performance to continued government financial support and management efforts.“Given the fact that BRD invests in different companies, most of which we hold significant shareholdings, our actual net profit is slightly above Rwf1.5b,” BRD’s Managing Director
Jack Kayonga, BRD’s Managing Director (File photo)
Jack Kayonga, BRD’s Managing Director (File photo)

Rwanda Development Bank (BRD) last week announced an increase in net profits, from Rwf1.2b in 2009 to Rwf1.5b in 2010.

The bank attributed the performance to continued government financial support and management efforts.

“Given the fact that BRD invests in different companies, most of which we hold significant shareholdings, our actual net profit is slightly above Rwf1.5b,” BRD’s Managing Director, Jack Kayonga told reporters last week. 

The Bank also registered growth in its loan book, where cumulative loan approvals increasing by 5 percent to Rwf27 billion from Rwf25.7 billion in 2009.

 “The money was largely channelled in support of agriculture, commercial real estate, hotels, exports promotion accounting for over 50 percent of the cumulative approvals,” Kayonga said.
 
Last week BRD finalised the takeover of Rwanda Housing Bank, with a vision to create a strong mortgage refinancing facility.
 
“This mortgage refinancing facility will provide a much needed financial resources to financial institutions to enable them lend to the end users and hence increase lending to housing,” Kayonga said.
 
Its Non Performing Loan (NPL) stood at 13 percent, higher than the central bank’s threshold of 7 percent.
 
BRD says that the higher NPL was a result of management’s deliberate decision to prudently follow-up on loans and also accelerate recovery.
 
“We are quite certain the figure will go down below 7 percent before close of business this year,” he said.

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