I am pleased to inform you all, our esteemed stakeholders, that we closed yet another financial year at the Development Bank of Rwanda (BRD) with positive results.
Last year (2015) was an extremely exciting year at BRD that saw the conclusion of a restructuring process to align the bank’s operations and management to its new mandate of a purely Development Finance Institution (DFI) following the disposal of the commercial retail banking activities to Atlas Mara Co-Invest Ltd.
BRD also took over the management of the national student loan fund from Rwanda Education Board. These two developments also necessitated a new organization structure that can deliver the bank’s expanded mandate as a catalyst for Rwanda’s economic development.
Following this, the Board and the Chief Executive Officer went through a vigorous exercise to redeploy staff in the new job positions according to competencies and requirements of the jobs.
During the year, management completed developing a new exciting five-year strategic plan 2016-2020 that will guide BRD’s operations in financing projects in strategic sectors with high socio-economic impact such as agriculture, exports, energy, affordable housing as well as social infrastructure. This will consolidate achievements so far registered in these areas.
Last year, the bank approved development loans of Rwf67.5billion which is a tremendous increase from loan approvals of Rwf64billion registered in 2014. This translated into Rwf50.2billion being injected into the various priority sectors of the Rwandan economy.
During the year just ended, the bank maintained focus in financing projects in manufacturing, agriculture, housing and service sector—the main drivers of Rwanda’s economic growth.
I am pleased to report that the bank achieved most of its operational targets even though profitability was affected by a foreign exchange losses as some of the bank’s resource funds are mobilized in hard currencies while lending is done in the Rwandan francs.
Those challenges notwithstanding, we are happy to report a net income of Rwf3.75billion for the year ending December 2015, an impressive increase from Rwf3.52billion in 2014.
The bank also registered good performance in other aspects of the business with the value of total assets growing from Rwf132.8 billion post-split to Rwf185.6billion in 2015. The bank’s loan book increased from Rwf93 billion in 2014 to Rwf125 billion in 2015 while the ratio of non-performing loans was contained at 5.6%.
The low NPL ratio is a reflection of banks prudent risk assessment without necessarily being averse to risk, as shown by the increase loan approvals of Rwf67.5 billion.
This good performance is a result of dedicated efforts of the management and staff in executing various projects under the competent guidance and oversight of the Board of Directors.
Let me convey the bank’s appreciation to our esteemed customers, without whose support and cooperation, our efforts would not yield that much.
We remain committed to continuously supporting our country’s development aspirations through targeted financial interventions in sectors with that have higher potential to increase production, exports, create jobs and eradicate poverty.