At the 44th Ordinary General Assembly (OGA) of the Rwanda Development Bank (BRD) held today afternoon Friday March 23, 2012 at the bank’s premises the (BRD) Board Chairman Mr. Fabien Majoro officially presented to the press and shareholders the external audit report, the balance sheet and profit and loss account of 2011, reporting a net profit of Rwf2.7billion and the bank sourced about US$ 35.6 million from external development partners.
Last year, BRD signed agreements with EIB and Africa Export-Import Bank (Afrexim) for 8 million Euros and US$ 25 million respectively.
The EIB funds are to fund SMEs while Afrexim facility is intended for trade related projects in SMEs and microfinance refinancing, targeting mainly women and young entrepreneurs’ projects.
The audited financial report was approved by the BRD shareholders at the OGA.
Majoro noted that BRD had a remarkable performance in 2011, pointing out an increase in net interest income of 61%, an increase of loan portfolio of 42% and 85% growth in net deposit income.
In real terms, net interest income rose from Frw4.3 billion in 2010 to Frw6.9 billion in as of December 2011
Thus, compared to 2010 when dividends went up by 5%, last year they increased by 14% which is above the industry average (of 10%).
According to Majoro, this growth was partly boosted by the Frw2.9 billion proceeds from the disposal of BRD’s 53.75% stake in the former national bonded warehouse Magerwa – a move that boosted the bank’s liquidity and made more cash available for lending. He said that as a result of the availability of a bigger loan envelope, BRD managed to make profit before tax of Frw3.9 billion – a 171% rise from Frw1.4 billion in 2010.
The Bank CEO Mr. Jack N. Kayonga that the new legal status frees the bank from the cumbersome procedure of having to seek parliamentary approval of all decisions. The bank was established in 1968 by an act of parliament as a public finance institution meant to provide long-term development projects in the country.
Kayonga said that the change in legal status will not change BRD’s role as the financing arm of the Government of Rwanda, but would instead enhance this relationship by making it more efficient. Rwanda government remains the largest shareholder in BRD.
During the past year, BRD continued to implement its mandate as the financing arm of the government by approving 219 loans amounting to Frw31.5 billion. This represents 18% growth from the previous year.
Remarkable improvement was also recorded in decline in non-performing loans with the bank managing to reduce the ratio from 13.4% in 2010 to 8.4% in 2011.
A possibility of listing BRD shares on the Rwanda Security Exchange (RSE) in the near future was also disclosed during the OGA. BDR also plans to open more branches in the rural areas to improve its outreach and also finance more rural development projects especially those in Agriculture sector.
BRD is a government investment arm financing the nation’s development objectives with a focus on the priority sectors of the economy, namely, Export, Tourism, Agriculture, Infrastructure and so on.