FINA Bank, has posted a healthy growth in net profits in the second quarter of the year worth Rwf440 million compared to last year’s Rwf200 million on account of better debt recovery efforts.
According to bank’s financial report, the lender’s net profits increased from Rwf160 million in the first quarter of this year to Rwf440 million at the second quarter of the year.
FINA Bank’s Managing Director, Rao G. Balivada, told Business Times that the bank attributes the achievement to better debt recovery.
“The achievement was attained through hard working staff, improved income and normal business growth,” Balivada said. According to Balivada, the lender targets to hit 1 billion net profits by the end of this year.
Last year, the bank recorded a net profit of Rwf550 million and projects a 50 per cent rise in net profits for the full financial year in 2011.
Currently, the bank’s non performing loans (NPL) stands at 9 percent of the total loan book, compared to 85 percent when its parent company Kenya based Fina Bank (K) Ltd took over the assets and liabilities of the former Bacar in 2004. Balivada adds that the bank is working to meet the Central Bank’s threshold on non performing loans set at 7 percent.
“We are handling the bad debts through a legal process as we also accelerate recovery. We have a team in place and we believe we will work out a solution with our clients and the figures are expected to come down,” Balivada said.
FINA bank is recognised as a leading SME bank that encourages entrepreneurship.