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BCR Nets Rwf2.9Billion Profit, Reason: Banking Innovation & Diversity

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It is official; the Commercial Bank of Rwanda (BCR) produced another outstanding performance last year better than the performance in 2010.

In a recent official statement by the Chairman Board of Directors, Michael Turner, the net profit last year was Rwf2.9billion compared to Rwf2.8billion made in 2010. Out of the gross profit of Rwf4.4billion, 34 per cent (Rwf1.5billion) was paid to Government in corporation tax. BCR became even more liquid as its deposits grew by 12 per cent from Rwf63billion to Rwf70.6billion. Many more clients of BCR benefited a range of innovative banking products as its loan portfolio grew by a dazzling 34 per cent from Rwf28billion disbursed in 2010 to Rwf37.6billion. Most borrowers of the BCR are now good borrowers, as there was a sharp drop in level of Non Performing Loans (NPLs) from 20 percent to only 5.5 per cent of the total loan portfolio putting it way below the industry average of 7 per cent. Thanks to the Bank’s tireless efforts in ensuring better credit risk assessment process, and the training of SMEs to become (better) lendable institutions.

Although the National Bank of Rwanda (BNR) prescribes a Capital Adequacy Ratio (CAR) of 15 per cent, BCR’s is well in excess of that reported at over 20 per cent. This means the bank now has more financial muscle to lend and can even rollout more exciting and affordable banking products. In BNR’s 2011 Monetary Policy Report, it is indicated that Banks’ CAR increased to 27.2 percent in 2011 from 24.4 percent 2010. Basically, the shareholders of BCR are happy the MD Sanjeev Anand confirms that, 40 per cent of the net profit Rwf1.144billion will be paid in dividends. In a recent one-on-one with Mr. Sanjeev, he said two main factors are attributed to this outstanding performance, which actually put BCR above the rest in Rwanda’s competitive financial sector. “We have two strengths which nobody can match: innovation and diversity of (banking) products. We offer a wide range of products that suit every type of business segment and person; broadly categorized under retail banking, corporate banking and business banking.

They’re packaged appropriately to benefit our clients on short-term, medium and long-term basis. They may be replicated by competitors in the market but BCR will always lead and others follow. For instance were the first innovators of; corporate bond (on Rwanda Security Exchange), syndications, leasing, mortgage, electronic and internet banking etc. Our objective is to continue maintaining that leadership”. Hope Magazine will bring you the detailed interview with Mr. Sanjeev in the print version of the magazine. It will also be posted on this website.

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