RAWBANK’s Loan Portfolio Sees Significant Improvement in 2022

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Kigali, Rwanda - According to a recent report, RAWBANK’s total loan portfolio has seen significant improvement in 2022.

Non-Performing Loans (NPLs) Decrease

• NPLs have decreased from 1.20% of the total portfolio in 2020 to 0.75% in 2022.
• The total value of NPLs has also decreased, from 2,752,449 thousand FC in 2020 to 3,723,402 thousand FC in 2022, representing a significant reduction of 33.6% over the past two years.

Credit Risk Improves

• RAWBANK’s credit risk has improved, with an average rate of non-payment (RNP) of 0.89% in 2022, down from 1.20% in 2020.
• The bank’s RNP is well below the 3% limit set by the Bank of Central Africa States (BEAC), indicating that RAWBANK is within prudential standards.

Performing Loans Increase

• The bank’s performing loans have increased significantly over the past year, representing 99.44% of the total portfolio in 2022.
• This is up from 98.93% in 2019 and 99% in 2021.

Return on Equity (ROE) and Return on Assets (ROA)

• RAWBANK’s ROE has seen an improvement, with a best-ever performance. However, this may be due to insufficient capital rather than satisfactory profitability.
• The bank’s ROA has increased by 1.97% over the past year, indicating that RAWBANK is generating more profits from its assets. However, the ROA remains below international standards of 1%.

Conclusion

Overall, RAWBANK’s loan portfolio has seen significant improvement in 2022, with a reduction in NPLs and an increase in performing loans. While there are still areas for improvement, the bank’s credit risk is well within prudential standards.

About RAWBANK

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RAWBANK is a leading commercial bank in Rwanda, providing a range of financial services to individuals, businesses, and governments. With a strong commitment to customer satisfaction and financial inclusion, RAWBANK has established itself as a trusted partner for its customers.