Kagera Co-operative bank's profit dips by 90%

Kagera Farmers Co-operative Bank's net profit dwindled by almost 90 per cent per cent to 15.8m/- in the fourth quarter of last year from 133m/- posted during the same quarter in the previous year.

The bank has attributed the low profit to decreased net and non interest income. The income from loans' interest was 113m/- against the 142m/- of the previous quarter while non-interest income dropped to 56m/- from 206m/- registered in the corresponding quarter in 2010.

However, the 160 expenses comprising salaries and benefit docket ate the profit too. The bank has 23 employees working at the one-branch bank in the region.

The only cooperative bank in the Lake Zone reduced the fund set aside for impaired losses to 6.79m/- in the quarter under review from 78m/- during the same period in 2010.

One of Bukoba streets
The bank's gross loans and advances to total deposits ratio stood at 81.45 per cent, exceeding the central bank ratio of 80 per cent. But, despite exceeding the regulator's loan to deposit ratio by 1.45 per cent, the bank's non performing loans to total gross loans was only 33.14 per cent.

KFCB assets grew to 6.8bn/- at the end of the last year from 6.03bn/- of same quarter in 2010. At the other hand customers' deposits dropped to 3.56bn/- from 3.66bn/-, depicting a negative growth of 3.08 per cent.

There are seven regional unit banks in the country, with the Dar es Salaam Community Bank being the largest in terms of profit and network. DCB which is listed on the Dar es Salaam Stock Exchange is figuring to expand its horizon to other regions but subject to BoT approval.
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