Rwanda : FINA Bank targeting $2.6million profit for 2012
Kenyan banking group FINA Bank made a handsome profit for 2011 amid growing savings and effective debt management – and that has raised the bank’s prospects for 2012.
The year-end balance sheet shows the commercial bank’s profits before tax for the past year grew to Frw 1.1Billion, up from just about Frw 553million a year before.
Executives from the lender, the third Kenyan bank in the country, attribute the booming performance to increased channels of income and improved recovery. Bad loans or Non-Performing Loans also dropped to about 8 percent in the same year – from 21 percent a year earlier.
FINA Bank has distinguished itself as a leading lender to small businesses (SMEs) with its loan portfolio growing to more than Frw 32Billion in the period under consideration, up from about Frw 25Billion. This was a 28 percent growth.
For the current year, FINA Bank estimates that current market conditions will position it to make some Frw 1.5Billion (approx US$2.6million).
FINA Bank, also active in Uganda, burst on the Rwandan market in 2004 through the purchase of the insolvent BACAR. Officials at the lender say it only stabilised some four years later following painful restructuring, rebranding and training of staff.
It currently has seven large branches across Rwanda, and plans are underway to spread its wings to many other urban centres. It recently launched a banking product targeting women dubbed “Fina Sugira”.