Welcome to COGEBANQUE,
Dear Shareholders, Twenty years ago, a group of committed and hard-nosed Rwandans joined hands to set up a bank from scratch. This was a very bold move at the time but looking back they have every reason to be proud of their achievement. The journey has not been easy but nonetheless worthwhile. Today Cogebanque is a well-known brand and an important player in the financial sector space with a balance sheet size of Frw 227 billion (from just over Frw 1bn at the end of 1999). What a difference 20 years can make! I congratulate you from the bottom of my heart.
I am extremely delighted to present to you the annual report of Cogebanque at such a historical moment. The bank is in a strong financial position judging by its recent performance. With this and its previous achievements, we have every reason to strive even harder and bolder and fight for our rightful place in the ever-changing financial sector landscape. We will be guided by our strategy to drive shareholder value and pursue other meaningful objectives as good corporate citizens.
In 2019, the bank registered a profit after tax of Frw 4bn (2018: Frw 3.3bn), a 20% increase from last year’s results. Interest income grew by 14% mainly driven by growth in the loan book and net interest margin was 9.3%, a 24% increase from 2018 levels. Our efforts at containing our cost of funds is bearing positive results. We closed the year with cost of funds of 5.2%. Moreover, we believe that our push for operational efficiency will translate into lower cost to income ratio in the medium to long term. The Balance Sheet grew by 11%, with the biggest driver being net loans and advances which grew by 16%. The bank return on equity was strong at 14.6% which compares favorably with the industry average of 12.5%.