Bank of Kigali posts 21.3pc rise in profit

Bank of Kigali headquarters in Kigali, Rwanda. Bank of Kigali has posted a 21.3 per cent increase in profit after tax, helped by a sharp rise in interest income which was driven by increased lending. Photo/FILE 

By David Mugwe, The EastAfrican

Bank of Kigali has posted a 21.3 per cent increase in profit after tax, helped by a sharp rise in interest income which was driven by increased lending.

Rwanda’s largest bank on Thursday said that profit after tax rose to Rwf7.3 billion ($11.3 million) for the period ended June this year up from Rwf6 billion ($9.8 million) for the period ended June last year boosted by a 57.1 per cent increase in net interest income.

The Rwanda Stock Exchange (RSE) listed lender, whose asset base is slightly higher than Kenya’s Nairobi Securities Exchange (NSE) listed Housing Finance said that its loan portfolio grew by 37.1 per cent to Rwf195.5 billion ($302.3 million) while deposits rose marginally by 8.7 per cent to Rwf227.9 billion ($352.4 million).

The bank said that over 2,500 accounts have been opened through agent outlets which were launched after a testing phase in October 2012 with net deposits mobilized amounting to Rwf13.5 billion ($22 million).

“We continue to invest in innovative and inclusive financial solutions as part of our motto to financially transform lives. We received additional long-term lines of credit amounting to $20 million which will complement our deposit base and enable us to continue providing long term financing in the market,” said James Gatera, chief executive officer of Bank of Kigali.

The bank’s share at the RSE on Thursday closed at Rwf184 ($0.28) having gained 44.88 per cent this year from Rwf127 ($0.21) where it closed at the end of last year.