BK projects higher 1st quarter profits

Bank of Kigali (BK), the country’s biggest lender projects huge margins with its net profit expected to sharply rise to Rwf2 billion in the first quarter of this year from Rwf849.9 million the same period last year. BK’s Marketing Manager, Januario Mucyo, told Business Times that the profits would be occasioned by the growth in the Bank’s loan book which has boosted its interest income as well as the increase in customer numbers. In the first quarter of 2011, banks approved Rwf62 billion worth of new loans compared to Rwf52 billion in same period last year, he said. “Our delivery channels have increased, especially electronic access has increased making our continuing customer growth have access to our services.” The Bank also has projected an increase in its net profits this year to Rwf8 billion from Rwf6 billion they made last year. The bank’s profit represents close to 50 percent of the total profits made by all banks in the country.This year, BK is planning to rollout new Automated Teller Machines (ATMs) that accept deposits. The service also allows transactions related to cash power payments, mobile phone top up and DSTV payments. Mucyo also said the bank’s Non Performing Loans (NPL) stands at 8 percent, 3 percent more than what the central bank requires. Ends