KCB Rwanda posts Rwf382m profit

KCB Rwanda has reported a net profit of Rwf382m for the third quarter of the year up from a net loss of Rwf1.9 b during the same period last year.  The subsidiary of Kenya’s KCB Group has maintained the good performance in its third year of operations after breaking-even in quarter one of this year, following two years of operating losses that were attributed to high startup costs.
Maurice K. Toroitich, KCB Rwanda’s Managing Director. The New Times / File.
Maurice K. Toroitich, KCB Rwanda’s Managing Director. The New Times / File.

KCB Rwanda has reported a net profit of Rwf382m for the third quarter of the year up from a net loss of Rwf1.9 b during the same period last year.

The subsidiary of Kenya’s KCB Group has maintained the good performance in its third year of operations after breaking-even in quarter one of this year, following two years of operating losses that were attributed to high startup costs.

In quarter two of this year, the bank reported a net profit of Rwf34m from a loss of Rwf2b in the financial year 2010.

Maurice K. Toroitich, KCB Rwanda’s Managing Director, told Business Times, in a phone interview, that the lender attributes the strong performance to the strong growth from custody business, a money markets related trade.

“Our loan book has matured especially from the mortgage product and also our customer base is delivering and has confidence in the bank,” Toroitich explained.

According to the lender’s financial statement, KCB Rwanda’s net interest income increased by 239 per cent to Rwf2.28b up from Rwf672m during the same period last year.

“The growth in interest income was due to sustained growth in loans and advances to customers. Fees and commissions increased by 97 per cent to Rwf1,304m up from Rwf661m in 2010 due to increased non lending trading activity by our customers,” the statement said.

However, the statement says operating expenses increased by 15 per cent due to a combination of cost control measures.

The lender’s total assets also grew by 75 per cent to Rwf53.05b up from Rwf30.3b in quarter three of 2010.

The bank attributed the strong growth in customer deposits to the continued growth of its clientele base and product variety.

“Our customer deposits increased by 71 per cent to Rwf37.4 billion in Q3 of 2011 compared to Rwf21.8 billion in the first nine months of 2010,” the statement says.

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