Access bank registers Rwf369 million net profit decline

m_Access bank registers

Access  bank  has  registered a  net profit  decrease  of Rwf369 to Rwf360 million  in the first half of the year  down from  Rwf729 million  in the same  period under review   in 2013, indicating almost  50 percent decrease.

Whilst, the bank’s total assets   climbed to Rwf50.6 billion up from Rwf48.9 billion by end of December  last year.

The bank saw its loan book portfolio growing to Rwf14.5 billion in 2014 up from Rwf13.2 billion by the end of last year which was pushed by mortgages that climbed to Rwf5.1 billion by end of June up from Rwf1.9 billion in 2013.

On the other hand, Treasury loans saw an increase of Rwf1.6 billion by end of June up from Rwf987.3 million as compared to 2013 while overdrafts fell to Rwf6.1 billion in the first half of the year from Rwf6.6 billion last year.

The bank’s positive performance  on the side of its  loan book helped  push up the entire  sector’s loan  portfolio with  credit going  to the private sector  increasing by 7.2%  from FRW 843.9 end December 2013 to FRW 904.5 end June 2014.

The bank also registered a drop in its exchange earnings that dropped to Rwf692.3 million by end of June 2014 from Rwf1.34 billion in the same period under review last year which is equivalent to Rwf647.7 million declines.

In general the banking sector faced a challenge of higher demand for Dollars to purchase the imports mainly in the construction and infrastructure which   narrowed   both the exchange gain margins and volumes.

But experts are optimistic that  with the  growing demand for credit by private sector especially to  finance the export sector, the  positive growth  in the mortgage sub sector, the  banking sector is likely to post more higher  results in the second  half of this year.

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