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Zigama CSS Registers Rwf9.4 billion Net Profit

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Zigama CSS Registers Rwf9.4 billion Net Profit

Despite having experienced spill over effects of an economic slowdown in the first half of 2017, Zigama CSS has registered impressive margins.

According to the Bank’s Chairman, Dr. James Ndahiro, the bank had expected a net profit of Rwf6.3 billion, but the performance was surpassed and managed to make Rwf9.4 billion.

Dr. Ndahiro spoke to Taarifa shortly after tabling an audited report to the general assembly at the RDF Headquarters on Wednesday March 29.

He said that 99% of its members were satisfied by the services and its results.

Zigama CSS serves the Army (RDF), the National Police (RNP) and the Correctional Services (RCS).

According to the Bank’s management,  over 140,000 different types of loans worth over Rwf84 billion were given to its members.

Other performances were registered in digital banking.

The bank’s CEO, Maj. Gen. Albert Murasira told Taarifa shortly after the General Assembly that in 2017, overall, 55% of all the transactions were conducted digitally.

In terms of volume, Maj. Gen. Murasira said that the volume transacted is still low, but towards the end of the year, the numbers picked up.

At the beginning, digital banking accounted for 6% and now it has reached 14% of the total amount of the bank’s transactions.

Zigama survives Quarter 1&2 hiccups

According to the Central Bank of Rwanda, the economy experienced a slowdown in the 1st and 2nd quarter of 2017.

The slow growth in quarter one and two reduced the purchasing power and consumption, leading to an increase in loan defaults.

However, according to the CEO, the bank does not face the same challenges as other financial institutions.

“We are special compared to other banks. We are a cooperative and we try to manage our expenses and maximise profit,” said Maj. Gen. Murasira.

Nevertheless, the bank experienced spill-over effects such as a decline in liquidity due to decrease in bank deposits. “Demand for deposits was higher. We did not get enough money, but we managed to deliver services as expected and the results were commendable because of our efficiency,” he said.

Continued growth

The bank has continued to post impressive numbers over the past years.

In 2014, the bank made Rwf5.2 billion profit after taxes, Rwf5.4 billion in 2015 and then a huge jump to Rwf6.8 billion in 2016 before cracking the walls and registering Rwf9.4 billion in 2017.

According to Dr. Ndahiro, Zigama projects to make at least Rwf10 billion.

Meanwhile, in comparison to traditional banks, BK Group, for example, registered a net profit of Rwf23.3 billion last year while I&M Bank reported a net profit of Rwf6.5 billion in 2017, respectively.

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