Rwanda Banks 2021 —An Initial Overview
According to the National Bank of Rwanda, the Supervisor and Regulator of Banking System in Rwanda, there are eleven (11) licensed banks in the country. As at April 2021 the commercial banks in the country included (sorted in alphabetical order) the following:
1. Access Bank Rwanda Plc
2. Bank of Africa Rwanda Plc
3. Bank of Kigali Plc.
4. Banque Populaire du Rwanda Plc.*
5. Cogebanque Plc.
6. Ecobank Rwanda Plc.
7. Equity Bank Rwanda Plc.
8. Guaranty Trust Bank Rwanda Plc.
9. I&M Bank Rwanda Plc.
10. KCB Bank Rwanda Plc.*
11. NCBA Bank Rwanda Plc.
The banks with the asterix* would be elaborated upon shortly.
Before going on to discuss what has changed in the sector in recent months, i.e., between April and August 2021, let me first acknowledge the heavyweights.
#1 Bank of Kigali
The Bank of Kigali is the undisputed largest bank in Rwanda. Led by a woman chief executive, Diane Karusisi, Bank of Kigali retains about a third of the Rwandan banking market. It was not long ago recipient of “Awards for Excellence: Best Bank in Rwanda” (Euromoney, 2021, July 16)
“…its deposits and loan book grew above the market average in 2020, serving 350,000 retail customers and 26,000 businesses… Its net profit grew slightly to RF38 billion ($37.8 million) in 2020, despite a higher cost of risk.”
Reports have also indicated that it “will remain the one to beat even as Kenya Commercial Bank completes its acquisition of Banque Populaire du Rwanda — the country’s second largest bank — from Atlas Mara.”
#2 Banque Populaire du Rwanda Plc. (BPR)
BPR is the 2nd largest bank in Rwanda. Resulted from the merger of two Atlas Mara investments: BPR and the commercial arm of the Development Bank of Rwanda (BRD). Has created an entry platform to develop operations in the EAC. Known as the neighborhood bank, BPR has become the bank with the largest network in Rwanda offering financial services to the furthest corners of the country — with 190 branches. BPR has also won awards in 2017.
Atlas Mara — some insight
Atlas Mara was founded on November 28, 2013, by former Barclays Executive Bob Diamond and entrepreneur Ashish Thakkar through Atlas Merchant Capital LLC and Mara Group Holdings Limited as their investment vehicles respectively.
Atlas Mara is rapidly growing into the sub-Saharan African financial services group that has acquired control of (or significant stakes in) banking operations in seven sub-Saharan African countries, including Botswana, Zimbabwe, Zambia, Tanzania, Mozambique, Rwanda and Nigeria, several of which rank amongst the fastest growing countries in the world.
From Eleven to Ten
While the list of eleven was recorded in April 2021,that number had whittled to ten by August 2021 following the successful acquisition of BPR by KCB, as captured in this press release “KCB Group Plc Completes Acquisition of Banque Populaire du Rwanda Plc (BPR).”
Returning to the asterix*
KCB Group Plc. only recently completed the acquisition of Banque Populaire du Rwanda Plc (BPR) from Atlas Mara Mauritius Limited and Arise B.V. This follows the securing of the requisite regulatory approvals in Kenya, and Rwanda in what makes KCB Group the majority shareholder in BPR (Rwanda’s second biggest bank), with effect from August 25, 2021.
The ambition of the group is instructive for every discerning observer, as captured in the post-acquisition pronouncement of Joshua Oigara, KCB Group CEO and MD:
“… the completion of the transaction in Rwanda will give the Group a stronger edge in deepening the ongoing Group strategy to scale regional presence.”
So while the Bank of Kigali may be winning awards, BPR has also had a fair share and now with the acquisition by KCB, the tide may be changing, if not changed, as 2021 draws to a close.
I would exploring, with the help of readers in the know, Rwanda’s top 5 banks (by assets, capitalisation, operating profits, branches etc.) in Q1 of 2022. My guess is that the likes of Access Bank Rwanda Plc., Ecobank Rwanda Plc., and Guaranty Trust Bank Rwanda Plc. — all with roots in West Africa — will stand up to be counted.
