Access bank registers Rwf369 million net profit decline
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.