{KCB Bank Rwanda Ltd. plans to focus this year on restructuring bad debts to almost halve the default rate in line with a regulatory requirement, said George Odhiambo, head of retail banking. } <\/p>\n
Non-performing loans rose to about 9 percent of net credit at the end of September, above the 5 percent limit set by the central bank, Odhiambo said in an interview in the capital, Kigali. Bad debts increased to 4.4 billion Rwandan francs ($6.5 million) as of Sept. 30 from 2.3 billion francs a year earlier, according to the company\u2019s latest financial statement. <\/p>\n
\u201cWe are making efforts to make a recovery, restructure the same loans with the customers and have more engagement with them so to avoid the worst outcome,\u201d he said on Dec. 31. <\/p>\n
Rwanda\u2019s central bank in June lowered its key lending rate for the first time in almost three years to 7 percent in a bid to stimulate credit and spur the economy. Policy makers left the rate unchanged at meetings in September and December. <\/p>\n
The bank, a unit of Kenya Commercial Bank Ltd., targets increasing its 8 percent Rwandan market share to \u201cdouble digits\u201d this year and to triple the number of customers to 75,000, Odhiambo said.
\nPerformance Targets <\/p>\n
The bank may not meet its 2013 performance targets, even as it put in place a turnaround plan after posting a 844 million-franc loss in 2012, Odhiambo said. <\/p>\n
The lender recorded net income of 79.5 million francs in the nine months through September and it plans to release full-year results in March, he said. <\/p>\n
\u201cWe will not realize the projections\u201d for last year, he said, declining to give the target. <\/p>\n
Kenya Commercial Bank, which also has operations in Uganda, Tanzania, South Sudan and Burundi, is cross-listed on Rwanda\u2019s stock exchange. <\/p>\n
Shares of the company, Kenya\u2019s largest lender by market value, traded unchanged from yesterday at 48.50 shillings, the highest since Nov. 28, by 11:52 p.m. in Nairobi, the capital, according to data compiled by Bloomberg.<\/p>\n
Source: Bloomberg<\/p>\n","protected":false},"excerpt":{"rendered":"
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