Bank of Kigali’s total assets grew by 34 percent

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m_Bank of Kigali’s total assets grew by 34 percent

Bank of Kigali saw its total assets grow by 43.0 percent year on year  and  5.2 percent  quarter  on quarter to Rwf477.5 billion (US$ 701.7 million)  by end of  June this year bringing its  net profits up.

Accordingly, the bank’s net income grew by 35.1 percent year on year representing Rwf9.8 billion in the first half of 2014 while its gross loans increased by 8.7 percent on yearly basis and 1.5 percent on quarter to quarter to Rwf224.7 billion, while net Loans increased by 8.8 percent year on year to Rwf212.7 billion.

The bank which is the country’s largest by asset base registered an increase in total operating costs which increased by 18. 7 percent  year on year to 14.5 billion while its  ration  on  cost against  incomes  improved slightly to  47 .2 percent in the  first half of the year  compared to  48.9 percent in the  same period  in 2013.

On the other hand, Shareholders’ Equity totaled to Rwf80.9 billion, a 14.9 percentage increase year on year while it saw a change on quarterly   basis of 6.7 percent with Assets divided by Total Deposits stood at 68.1 percent by end of June 2014 up from 49 percent in the same period in 2013.

Whilst net Interest Income increased by 21.8 percent on yearly basis to Rwf19.6 billion with Net Non-Interest Income amounted to Rwf11.0billion representing an   increases of 21.2% yearly basis. The Total Operating Income reached Rwf30.6 billion in the first   six months of the year.

“ this was mainly driven  by  an  increase in foreign exchange related income and net fee and commission income which rose by 26.7 percent  and 14.2 percent  respectively,” the statement from  the bank read.

The bank also stated that   its Client Balances & Deposits increased by 41.7% y-o-y and 8.8% q-o-q and to Rwf323.0 billion with retail customers’ balances and deposits reached Rwf81.8 billion, while corporate customers’ balances and deposits reached Rwf241.2 billion by the end of June 2014.

Liquid Assets divided by Total Deposits stood at 68.1% as at 30 June 2014, up from 49.0% as at 30 June 2013.

Nevertheless,  the ratio   between  gross  loans against total assets  fell  slightly   by end of June  2014  going to 47.1 percent up from ne 2014 48.8 percent  by  end of  March 2014.

Moreover, there  was also a decline of Rwf5 billion  on  mortgage loans to  Rwf44.1 billion  in the forts six months of the year  up from  Rwf49.1 billion in 2013 while   Treasury  fell  from Rwf43 billion to Rwf39.7 billion and consumer loans  declined also  to Rwf32.2 billion from  Rwf33.6 billion .

James Gatera , the bank’s  Managing Director  said that the bank  made efforts  in the first half of the year to Expand its  the agency banking network to 751 agents and processed approximately 300,000agency banking transactions worth over Rwf29.2 Billion;

“We increased the number of mobile branches to nine with transactions processed amounting to Rwf9.7 billion,” he said

In the first six months, the bank served 195,366 retail customers and 20,191 corporate clients while it was able to set up 70 ATMs and 608 POS terminals accepted VISA cards and 214,820Mobiserve users up from 122,570 users in the same period under review in 2013.

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About the author

Olive Ndaka is the Junior Editor for RwandaEye. An investor and young entrepreneur, she is a quick learner and has contributed many articles for RwandaEye in Kinyarwanda.

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