Banque Commerciale du Rwanda (BCR) is one such bank that has taken advantage of the post-war stability. Following privatisation in 2004, the bank’s market share has grown to 25% from 20% and it boosted its post-tax profits in 2007 by almost 50% to RwFr3.1bn ($5.7m), from RwFr2.1bn in 2006. BCR grew its assets by 37% in 2007 and its Tier 1 capital by 38%. Return on equity was a solid 41% in 2007, up one percentage point on 2006, and the bank’s non-performing loan ratio fell by two percentage points to 21% during the course of the year.
It was a busy year for BCR. The bank grew its retail customer base by 82% and its lending by 50%. It also took steps to create a mortgage market in Rwanda with the launch of a mortgage savings account for ordinary Rwandans, which the bank says is a first step to introducing a full-blown mortgage product in 2008. BCR was also the first company in Rwanda to issue a bond, worth RwFr5bn, on the nation’s over-the-counter market.
BCR’s acting managing director Gilbert Lagaillarde is optimistic. “The bank’s strategic positioning means we are ready to continue to exploit the growing opportunities that are being offered by the Rwandan economy,” he says. “For investors coming from the east African countries and the rest of the world, this [award] is an assurance that we run a brilliant bank in Rwanda that understands business and we have all it takes to deliver quality and professionalism.”
