KCB Rwanda expects its profits for the second quarter of 2011 to slip after the bank enjoyed a successful first quarter.
In the period from January to March, 2011, KCB Rwanda—a subsidiary of Kenya Commercial Bank (KCB) Group— posted a net profit of Rwf54m after two full years of losses.
KCB Rwanda’s Managing Director, Maurice K. Toroitich, told Business Times that going by preliminary results, which are yet to be audited, they anticipate the bank to make slightly lower earnings.
Management had attributed the results to cost cutting measures and income growth over the past one year. In the same period last year, the bank reported a loss of Rwf740.9m.
“Bralirwa’s Initial Public Offering (IPO) helped the bank record a healthy growth, which did not happen in the second quarter. But the bank will manage to record further growth but from its normal operations in the second quarter,” Toroitich noted.
He further noted in the second quarter last year, the bank was operating in losses, but this year’s performance is expected increase by more than 100 per cent.
The bank attributed the second quarter performance to consistency in the growth of its customer base and balance-sheet growth.
“Our branches have started to generate steady growth and we can’t rule out the contribution of the mortgage business,” he explained.
Currently, the bank has nine branches across the country.
Toroitich further indicated that the mortgage facility is expected to contribute more to the bank’s financial performance in the third and fourth quarter of the year.