The International Finance Corporation has said it plans to invest USD 10 Million in KCB Bank Rwanda, which is part of Kenya’s KCB Group, to boost the bank’s lending capacity mainly to small and medium enterprises (SMEs) and the housing sector in Rwanda.
The proposed investment reportedly comprises two loans denominated in USD and Rwandan Franc. The IFC further said that the investment is intended to provide dollar funding to the bank to support long-term dollar needs of the SMEs while the RWF tranche is intended to provide the bank with long-term local currency funding to increase mortgage lending.However, the transaction is subject to approval by the IFC Board.
KCB Bank Rwanda recently reported a profit before tax increase by 165% in Full Year 2015 to Frw 3.2 Billion compared with Frw 857 Million reported in year 2014. This marked the third year of consistent growth and profitability reported by the bank.
The bank’s total operating income increased by 28% buoyed by a 35% increase in Net Interest Income due to increased lending activity. Notably, the bank reported a 38% decrease in net impairment for financial assets which indicates a significant improvement in the quality of its loan book. More Analysis on the Performance; KCB Rwanda pretax Profits Up by 165%