Bank Of Kigali

Bank of Kigali has recommended a 50% payout in dividends from its audited net income for the years 2011, 2012 and 2013. This as it realizes 8.2 billion francs in net income according to its unaudited full report for 2011.

Client’s balances and deposits grew to Rwf 181 billion while total assets grew by Rwf 291.3 billion at the end of December 2011.

James Gatera the Chief Officer Bank of Kigali highlighted plans that included realizing more assets growth, plus the opening of new branches among other for 2012 to maintain a steady growth.

Meanwhile Rwanda could license new banks with the muscle to bankroll large investment projects to increase economic growth projected at 7.6 percent this year.

The central bank Governor Claver Gatete said on Tuesday.

Gatete said Rwanda has nine commercial banks and hundreds of microfinance institutions, but wants to have banks that can write big loans to drive investment and propel economic growth.

"We need bigger ones that can lend $100 million and above, which are investment-oriented and have an international reach where they can mobilise resources from outside," he said at a regional meeting on inflation.

The banking industry in Rwanda was healthy, Gatete said, with the capital adequacy ratio for the industry at 27 percent last year, against a statutory requirement of 15 percent.

Last year, one of the country's largest banks, Bank of Kigali, listed its shares after a successful initial public offering. Rwanda also granted an operating licence in the country to Kenya's Equity Bank.

Gatete also said Rwanda plans to reduce loan defaults in the industry to 5 percent of total loans in the medium-term, and cut non-performing loans in the industry to under 7 percent this year from 8 percent, to ensure the sector's continued health.

Total outstanding credit by banks in the country stood at 50.4 billion Rwandan francs, he said.

Gatete said the main risks facing the country's projected growth of 7.6 percent this year - from a forecast 8.8 percent in 2011 - stemmed from the euro zone debt crisis.