WHO GOVERNS US
WHO GOVERNS US
KCB BANK RWANDA Managing Director's Statement
the bank waived fees on mobile banking transfers. Furthermore, we restructured loans worth FRW74 Billion to aid customers affected by the pandemic. Through these initiatives and the Economic Recovery Fund provided by the Government of Rwanda through development partners, we were able to stabilize several SMEs and Corporate businesses, which we believe will be a strong contribution to foundation for the economy going into 2021 and beyond. Our strategy going into 2020 had a primary focus on Beyond Banking, which is based on strengthening our digital offering, building efficiency and productivity in all areas of business, as well as creating value propositions for all our customers. This strategy is driven by stateof-the-art IT infrastructure, an enhanced end to end credit process, and rigorous performance management protocols. In 2020, we were able to launch instant card issuance in our branches, as well as increase the number of utility services on our mobile and internet banking platforms that cater to bill payments for postpaid water bills, prepaid electricity, and airtime purchases among others.
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020 was a tumultuous year that taught us more about the importance of safety of our staff, customers, and society in general like no other recent year. The world experienced a pandemic in COVID-19 that affected billions of people in one way or the other. No one was prepared for the business effects of a global pandemic. Several people were affected medically, some experiencing the pain of COVID-19 symptoms, and others losing their lives because of this virus. Multiple businesses slowed down and, in many cases, closed. There was a cascading effect that cost people their jobs and subsequent livelihoods of many homes. As a pivotal part of the Rwandan community, we had to play our part. At the onset, we donated FRW100 Million for emergency interventions to cushion vulnerable citizens affected by the pandemic through the Ministry of Finance. In line with the Government of Rwanda’s initiatives to ease the process of online transactions,
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2020 | INTEGRATED REPORT & FINANCIAL STATEMENTS
I am also happy to report that we launched our virtual account opening service, Mbanki, which allows anyone with a mobile phone and a valid national ID to open an account instantly at the comfort of their homes. A move that will undoubtedly drive financial inclusion in Rwanda. We launched a branch at Tropical Plaza in the Central Business district that caters for various SME and personal banking customers and soon will be able to host a self-service center, fully equipped to cater for all basic transactional requirements.
On the business front, the bank closed the year at FRW 20.3 Billion in revenues, a 2% drop from the same period in 2019. Credit loss was FRW1.6 Billion, from FRW699 Million in 2019. An expected increase given the effects of the pandemic. Expenses dropped from FRW6.5 Billion to FRW4 Billion, as part of a shrewd business recovery strategy. Overall, Profit After Tax dropped by 38% from FRW6.5 Billion to FRW4 Billion. Looking at Assets and Liabilities, there was notable growth in the bank’s loan book, from FRW135 Billion to FRW150 Billion, a positive indication of an economic revival at the close of 2020 going into 2021. Customer deposits grew by 13%, another reflection of economic growth potential, despite the stain of an economic downturn. Our overall sentiment is one of positivity. We look forward optimistically in a reversal of our business fortunes, which we hope will provide renewed energy to local businesses and the community at large. As part of our commitment to the Rwandan community, we continue to invest in a shared value approach through the KCB Foundation’s IGIRE program. We were able to train 100 teen mothers on various business strategies. Through this program we aim to educate several Rwandans over the next few years in technical and vocational skills to drive selfempowerment and employment rates as we play our role in support of growth of Rwanda’s SME base. 2021 is set to be a more productive year than its predecessor. Our intention is continue driving our digital agenda aggressively, providing efficiency in our credit process, as well as delivering multiple value prepositions to all customers. I firmly believe we have the right people and enthusiasm to deliver our ambitious strategy in the coming years.
Our intention is continue driving our digital agenda aggressively, providing efficiency in our credit process, as well as delivering multiple value prepositions to all customers.
2020 | INTEGRATED REPORT & FINANCIAL STATEMENTS
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