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7/28/2019 Bank of Kigali Annual Report 2011
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Annual Report
2011
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Best Bank in Rwanda 2009,2010,2011
Bank of Kigali
Com
panyoftheyear201
1
BankoftheYear200
9,2010,2011
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Bank of Kigali aspires to be the leading provider of the
most innovave nancial soluons in the region.
Our mission is to be the leader in creang value for our
stakeholders by providing the best nancial services to
businesses and individual customers, through movated
and professional sta.
Customer focus
Integrity
Quality
Excellence
OUR VISION
OUR MISSION
OUR VALUES
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Pages
Business Review
Financial Highlights 3
Key Performance Raos 5
Valu Addd Statmnt 6
Chairmans Rport 7
Chif execuve Ocers Report 9
Corporat Social Rsponsibility Rport 14
Corporate Governance
Corporate Governance Report 18
Bank of Kigali Board Prole 23
Execuve Management Prole 25
Financial Statements
Bank Informaon 31
Rport of th Dirctors 32
Statement of Directors Responsibilies 33
Rport of th Indpndnt Auditors 34
Financial Statmnts:
Statement of Financial Posion 36
Incom Statmnt 37
Statement of Comprehensive Income 38
Statmnt of Changs in equity 39
Nots to th Financial Statmnts 41
Notice of Annual General Meeting 90
Proxy Form 92
Table of Contents
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Financial Highlights
2007 2008 2009 2010 2011
350300
250
200
150
100
50
0
121.5 120.8151.9
197.7
287.9
Total Assets
CAGR - 24.1%
2007 2008 2009 2010 2011
70
60
50
40
30
20
10
0
Rwf bn
12.8 15.918.5
31.9
61.6CAGR - 48.1%
Shareholders Equity
10
9
8
7
6
5
4
3
2
1
0
2007 2008 2009 2010 2011
Prot Aer Tax
CAGR - 19.5%
4.3
5.75.3
6.2
8.7
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Rwf bn
Rwf bn
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2007 2008 2009 2010 2011
140
120
100
80
60
40
20
0
Corporat Rtail
CAGR - 23.3% 130.7
105.5
80.978.8
56.6
45.965.2 66.5
84.8 89.510.8
13.6 14.4
20.741.2
Gross LoansRwf bn
200
180
160
140
120
100
80
60
40
20
0
Rwf bn
101.9 93.8109.5
135.7
181.0
78.0 69.681.6
99.3
126.8
23.9 24.227.8
36.4
54.2
2007 2008 2009 2010 2011
Corporat Rtail
CAGR - 15.5%
Customers Deposits
2007 2008 2009 2010 2011
250
200
150
100
50
0
ATMs Numbr of Branchs POS
6 6 611 1440 52 33 44
97
202
18 26 260
Delivery Channel Evoluon
Financial Highlights
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Key Performance Raos
2011 2010
Protability
Return on Average Assets 3.6% 3.5%
Return on Average Equity 18.6% 24.5%
Net Interest Margin 8.4% 8.3%Loan Yild 16.9% 15.8%
Intrst expns/Intrst Incom 26.8% 25.6%
Cost of Funds 3.1% 2.8%
Eciency
Cost/Income Rao 48.4% 47.5%
Costs/Average Assets 5.9% 5.8%
Personnel Costs/Total Recurring Operang Costs 51.8% 52.3%
Personnel Costs/Average Total Assets 2.9% 3.0%
Personnel Costs/Total Operang Income 25.1% 25.0%
Net Income/Total Operang Income 29.5% 29.2%
Liquidity
Nt Loans/Total Assts 42.8% 51.3%
Liquid Assts / Total Dposits 60.8% 43.9%
Intrbank Borrowings / Total Dposits 9.5% 12.2%
Short-trm Liquidity Gap 43.0% 11.9%
Gross Loans / Total Dposits 65.3% 68.3%
Asset Quality
NPLs / Gross Loans 8.3% 8.5%
NPL Coverage Rat 85.1% 45.8%Larg exposurs / Gross Loans 8.8% 14.3%
Cost of Risk 3.8% 2.0%
Leverage (Total Liabilies/Equity), Times 3.7 5.2
Capital Adequacy
Cor Capital / Risk Wightd Assts 28.1% 18.7%
Total Qualifying Capital / Risk Wightd Assts 29.1% 20.1%
O Balance Sheet Items / Total Qualifying Capital 363.1% 351.2%
Larg exposurs / Cor Capital 21.3% 61.1%
NPLs less Provisions / Core Capital 3.0% 19.7%
Market Sensivity
Forx exposur / Cor Capital 11.7% 11.5%
Forx Loans / Forx Dposits 0.8% 1.0%
Forex Assets / Forex Liabilies 105.3% 106.7%
Selected Operang Data
Full Tim employs 602 454
Assets per FTE (RwF billion) 0.5 0.4
Number of Acve Branches 44 33
Number of ATMS 26 26
Number of POS Terminals 202 97
Numbr of Rtail Accounts 73,716 39,741
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Corporate Tax
Value Added Tax
Withholding Tax
District Tax
Sta PAYE
1,965,143 2,502,810
2011
Rwf 000
577,985 493,075
833,221 552,740
54,8099,583
1,868,603 1,155,568
2010
Rwf 000
TAXES PAID
Value added statement
Value Added Statement in Rwf 000 2011 % 2010 %
Interest, commissions and other revenues 35,530,550 25,329,695
Interest paid to depositors and costs of other services (13,907,872) (9,016,781)
Wealth created 21,622,678 16,312,914
Distribuon of wealth
Employees
Salaries, wages and other benets 5,201,832 24% 3,882,773 24%
Government 5,299,760 25% 4,713,776 29%
Shareholders
Dividends paid to shareholders - -
Retenons to support future business growth 11,121,086 51% 7,716,365 47%
Rtaind surplus 8,688,765 6,178,582
Depreciaon and amorsaon 2,432,321 1,537,782
Wealth distributed 21,622,678 16,312,914
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Chairmans Report
Lado GurgenidzeChairman of the Board
Dear fellow Shareholders of
Bank of Kigali,
This years performance was exceponally
good. Your bank managd to grow its Nt
Income by 40.6% (compared to the growth
by 30.6% in 2010). This accelerang growth
was achieved despite the challenging
global environment in the second half of
2011, and our management and sta are
to be congratulated for this achievement.
Despite the rapid growth, we managed to
maintain cost discipline, with Cost-Income
Rao of 48.4%, largely unchanged from
2010, and kept our protability intact,
achieving ROAA of 3.6% in 2011, a slight
improvement on 2010.
Perhaps the best news is that we have much
to look forward to, as our future growth and
development appears well funded. In 2011,
w managd to procur two long-trm
credit lines from Internaonal Financial
Instuons, pulling ahead of the compeon
in this respect and, on 1 September 2011,
your Bank was oated on the Rwanda
Stock exchang. With th capital raisd in
the IPO, your Banks equity stood at the
year-end 2011 at RwF 61.6 bn (US$ 101.9
mln), accounng for approximately 40.8%
of the banking sector equity. In 2011, we
also achieved market share gains by Total
Assets (32.4%, up from 27.4% in 2010) and
Customer Deposits (28%, up from 25.9% in
2010).
Despite the high level of transaconalacvity in 2011, your management team did
not let itself be distracted from execung
our strategy of building a leading universal
bank with ubiquitous rtail prsnc in
Rwanda. Our branch, ATM and POS terminal
footprint has been expanded, and a lot of
eort was directed at modernizing our retail
oering and electronic banking channels.
Product innovaon connued as well, as the
foundaon was laid for the private banking
and micro lnding lins of businss.
Looking ahead, rest assured that the Board
and managmnt of your bank will rmain
focused on delivering protable growth as
we complete the modernizaon of your
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Chairmans Report
bank. I am xcitd that w nhancd our
middle management layer by recruing
several high-calibre professionals locally
and regionally, who have joined the ranks
of our talented sta. Now that we are a
publicly tradd company with a 45% fr
oat, it is incumbent upon us to further raise
our game in terms of strategy execuon
and shareholder communicaons. Finally,
I encourage you to vote for the dividend
payout policy recommended by the Board,
which amounts to paying out 50% of our
Net Income in 2011, 2012 and 2013 as
dividends your bank can aord it, without
any adverse impact on its growth prospects.
I look forward to wlcoming you at our
upcoming Annual Gnral Meeng ofShareholders and to reporng on our
connued progress in next years annual
rport.
Lado Gurgenidze
Chairman
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Chief Execuve Ocers Report
James GateraChief Execuve Ocer
Introducon
Iam pleased to announce the Banks connued
strong and sustained growth in our nancial
prformanc and balanc sht in 2011. Th
Bank increased its prot aer tax by 40.6% to
Rwf 8.7 billion and grw total assts by 45.6%
to Rwf 287.9 billion. Th growth was as a rsult
of connued branch expansion and investments
in alternave delivery channels, strong liquidity
posion, funding sources and increased focus on
rtail banking.
Sustained strong market posioning
Bank of Kigali has connued to dominate the
Rwandan banking sctor. With total assts of
Rwf 287.9 billion, the Bank accounts for 32.4%
of th total banking assts. W also maintain th
leading posion in the market for total customerdeposits, total performance, and total net loans.
Th Bank accounts for 29.4% of total nt loans in
th markt. Th growth in loans was supportd
by strong dposit markt shar of 28.0%. W
managd to stay at th top bcaus of our
customers condence and undivided focus on
thir nds.
Review of nancial performance
In 2011, our prot aer tax increased by 40.6% toRwf 8.7 billion. This was mainly du to th growth
in our Total Operang Income which was Rwf
29.5 billion, up 39.3% from 2010. The growth in
operang income was driven by a 36.2% growth
in Nt Intrst Incom which rachd Rwf 16.6
billion. Non-intrst Incom also prformd
wll growing by 43.5% to rach Rwf 12.9 billion
driven by the FX trading which achieved a 45.7%
growth rat to rach Rwf 7.6 billion. Fs and
commission also grew by an impressive 43.2%
and amountd to Rwf 4.3 billion.
Our Total Operang Expenses grew by 41.3 %
and rachd Rwf 14.3 billion. This incras has
put pressure on our Cost/income rao which
moved from 47.5% to 48.4% in 2011.
Net Provision for non performing loans increased
by 91.2% to Rwf 4.5 billion.
Review of nancial posion
Our Balance sheet saw a considerable growth
of 45.6% in 2011 raching Rwf 287.9 billion.
Th growth in total assts was supportd by
th incrasd lnding which saw our nt loans
incras by 21.4% to RwF 123.1 billion.
The growth in our loan book was driven by retail
consumr lnding which now accounts for 31.5%
of gross loans up from 19.6% as at Dcmbr
2010. The increase in the rao of retail loansemphasizes our commitment to growing our
retail book as compeon for Corporate, SMEs
and Non Business acvies increases. The
growth in our corporat loan book was 5% as
w undrtook to rduc th xposurs of som
of our large borrowers in order to eecvely
manage concentraon risk.
On the liability side, the growth in customer
dposits was 33.4% raching Rwf 181.0 billion.
This growth was driven by gains from our branch
expansion strategy. Overall, the connued loyaltyand condence of our customers enabled us to
consolidate our posion as the market leader in
lnding and dposits in th banking sctor.
The capital raised in the IPO shored up the Banks
capital, increasing Shareholders Equity by 93.2%
to Rwf 61.6 billion from Rwf 31.9 billion in 2010.
The Bank remains the best capitalized in the
markt. Th cor capital to total risk wightd
assts incrasd from 18.7% to 28.1%. Th total
capital to total risk weighted assets rao rose
from 20.1% to 29.1%.
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Chief Execuve Ocers Report
Our strong balance sheet and capital base have
laid the foundaon for us to take advantage of
market opportunies and derive good value for
our exisng and potenal investors.
Risk Management and Compliance
During the year under review, the Bank saw
an improvement in asset quality. NPLs as a
prcntag of Gross Loans stood at 8.3%.
This was due to improved credit risk management
as a result of the Banks revised Credit Policies
and Know Your Customer (KYC) Policies. The
Bank also began to benet from our credit risk
managmnt approach which was r-nginrd
in 2010 to focus on le and case management.
There was an overall improvement in the credit
risk environment as the sector began to reap
dividends from reforms in the Mortgage Law
and Land Registry to fast track provision of tle
deeds and foreclosures. In addion, the Credit
Rfrnc Burau is incrasingly bcoming an
important tool in assisng us to assess credit
risk. Going forward w xpct it will bcom a
more eecve tool as it signs up all micro nance
instuons, ulity companies, SACCOs and
insuranc companis.
Th Bank also undrtook to mor prudnt
provisioning to increase our coverage rao. In
2011, we made IFRS provisions of Rwf 8.3 billion,
to bring the coverage rao to 85.1% compared to
45.8% in 2010.
As part of our strategic plan, the Bank connues
to invest in acvies that increase educaon and
awarnss in risk managmnt and complianc
among our sta in order to enhance the risk
management culture to the level of regional and
internaonal banks.
Human capital development iniaves
Our employees are our greatest asset and
the biggest drivers of the Banks sustaind
performance. We currently boast a sta
complement of 602 and are commied to
creang a working environment that develops
and equips all sta with the skills and capabilies
to serve our customers eecvely.
The Bank connues to invest in enhancingtheir skills parcularly in retail banking as we
pursue our strategic objecve to serve over
500,000 clients in the coming years. Through
our partnership with John Scholl, a renowned
internaonal customer service guru, we
embarked on the second module of service
quality training and had 300 sta trained in swi
service delivery and showing leadership at work.
A total of 80 sta was trained in technical areas
of front oce and back oce funcons. The
Bank also embarked on improving the so skills
of its sta parcularly in communicaon and had
85 sta trained in negoaons, public speaking
and eecve communicaons.
Our product and service innovaons
During the year, we focused on increasing our
product and service oering in both corporate
and rtail banking in ordr to mt th changing
needs of our customers. Our biggest achievement
was the launch of our mobile banking service
which gives customers the ability to check their
balances and order cheque books, in addion to
purchasing prepaid electricity, prepaid TV and
intra-bank money transfer in addion to giving
customers with account informaon and daily
xchang rats.
In the card business, the Bank started issuing
internaonally accepted VISA Electron Debit
cards in addion to the local branded cards from
R-SWITCH and th prpaid ZIPP Card which is
targeed at the lower income earners.
Investment in technology driven alternave
delivery channels
In 2011, we connued to invest in technological
developments to meet our customer demands
and invested in making our ATMs and Points of
Sales (POSs) interoperable with both local debit
cards and internaonal cards.
Our ATMs and Points of Sales (POSs) are able to
accpt not only R-Switch cards and VISA Cards
but Diners Club and China Union Pay (CUP) cards
as well. Going forward, progress is underway to
ensure that they also start accepng American
exprss as wll. Th incrasd introprability of
our channels will encourage addional tourism
spnd in th country.
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Future aspiraons for 2012
Our theme for 2012 will be to connue to
This will be realized through connuedinnovaons in self services products such asmobile banking based products, card basedproducts and agncy banking.
The Bank will connue to grow its branchntwork and 12 branchs ar xpctd to b
opened in 2012. In addion, we expect to seeour footprint xtnd across our bordrs through
representave oces in selected neighbouringcountris.
We will connue to expand our self-servicechannls spcially through mobil phons
which have proven to be an eecve deliverychannl bcaus of thir ubiquity.
On the card business front, the Bank will beginto issue the VISA Classic, VISA Gold and VISAprepaid cards and launch e-commerce services.Ths cards will nabl our customrs to
make purchases internaonally and online. Inaddion, we will grow our PoS and ATM network
to support th growth in th card businss and
we expect to deploy 60 more ATMs with added
funconalies to reduce fooall in the branches.
The Bank will also focus on developing its newbusiness segments parcularly micro lending aswe strive to improve access to nance for thesgmnts at th lowr nd of th pyramid. Th
service was launched in 2011 and was pioneeredwith 3 products aimed at women, youth andsenior cizens.
For our High Net Worth and VIP clientele, theBank has launchd its Prmir Banking branch
at th ultra-modrn Kigali City Towr. BK Prmir
is the ulmate convenience service centre forths clints.
The Bank will connue to strive to deliversuperior customer service and will invest heavilyin training and development of our sta andprocesses to ensure that we are cost eecve.
In 2012, we will launch a 24 hour call centreto improve customer feedback processes andcustomer relaonship management.
Funding our growth strategies
As is th cas with all banks across Rwanda and
th rgion th Banks long trm loan assts ar
mainly funded by mobilized short term deposits.
This rsults in incrasd maturity mismatchand intrst rat risk for th banks. In ordr
to diversify our source of funding, the Banktook to rais capital in th capital markts and
successfully raised Rwf 20.7 billion in its IPOin 2011. The addional capital will be used forchannel expansion, increased lending and torduc our asst/liability mismatch.
In addion to the long term credit line from theEuropean Investment Bank worth 5 million, ofwhich we are nearing complete drawdown, the
Bank also signed two addional long term creditlines. The credit lines worth $12 million and $20 million are from the African DevelopmentBank and the French Development Agency andwill further improve the Banks liquidity anddiversify our source of funds. These credit linesar xpctd to b drawn down in 2012.
Bringnancialservices
closertothepeople
Conclusion and acknowledgement
We ancipate that the market place will becomeincreasingly compeve in the coming years.
We shall connue to engage in acvies that
improve eciency of our business and maintainour customer service promise to meet andexceed our customer expectaons.
We aim to connue to deliver shareholder valuefor our new and exisng shareholders and growour prots and assets base. Our shareholdersconnue to support our business growthstrategies and have decided to retain 50% of theprots in the Bank as we strive to bring nancialtransformaon in Rwanda.
Spcial thanks also go to our loyal customrswho connued to entrust us with their businessduring the year. We recognize that you are the
reason we are in business, and we value your self-assurance in Bank of Kigali and its Management.
I would also lik to thank th Board of Dirctorsfor their guidance and direcon and for workingvery closely with Management in order to realizethe opportunies abound and to grow ourbusiness as we take humble investment stepstowards aainment of the countrys Vision 2020.
I am also grateful to all sta, without them thisimpressive performance and assets growthwould not have been possible. Their hard work,dedicaon and loyalty are invaluable in ourpursuit of excellence in Rwandas nancial sector
and I am condent we will all strive to deliver inth sam spirit in 2012 and byond.
Chief Execuve Ocers Report
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Corporate Social Responsibility Report
13
Bank of Kigali Branch footprint
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Corporat Social Rsponsibility has assumda great importance in the corporate world,
including th banking sctor. Bank of Kigali
connues its visible trend of promong socially
responsible policies and environment friendly
budgeng, lending and investment pracces. The
Bank has acvely invested and highlighted the
importanc of CSR and has put in plac a suitabl
and appropriate plan of acon towards helping
th caus of sustainabl social and conomic
development. Recognizing the importance ofCSR, the Board approved a policy to devote 1% of
the annual net operang income to CSR acvies.
The Banks CSR principles and acvies are
built on the foundaon of four pillars, which
include promoon of educaon especially the
needy members of the society, health acvies,
sustainable environment protecon, and poverty
alleviaon. The pillars are designed to recognizethat th small stps w tak today contribut to
a biggr chang for a brightr tomorrow of our
community.
Pillar 1: Improving access to educaon
Bank of Kigali acknowldgs its rol in nurturing
human capital, parcularly in educaon which is
a crical success factor for Rwandas long term
development.
The Bank, through its partnership with the
Imbuto Foundaon, provides scholarships to
200 studnts from ndy backgrounds. Th
Bank also supports of th School of Financ and
Banking (SFB) and its various iniaves including
sponsoring prizes awarded to their best students
in ordr to ncourag acadmic xcllnc within
th studnt community.
Corporat Social Rsponsibility Rport
The Head of Corporate Banking presents a cheque to the Rector of the School of Finance
and Banking in support of the Best students at the school.
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Th Bank also pldgd support to th Capital
Markets University Challenge. The UniversityChallenge was organized by the Capital MarketsAuthority to incras awarnss of Rwandas
capital markets through a compeve essay
wring compeon and television quiz showamong 10 parcipang terary instuonsnaonwide.
Pillar 2: Promong Community Health
Th Bank acknowldgs th nd for a halthy
society in order for Rwanda to achieve its Vision2020. In 2011, the Bank maintained its Rwf100 million commitment to Friends of Africa,a campaign focusing on incrasing rturns
on investment in the ght against HIV/AIDS,Tubrculosis and Malaria.
During the year, in recognion of the increasingincidence of cancer in our society, the Banksupported the Ulinzi Walk, whose aim wasincreasing awareness of breast and cervicalcancer by raising funds to support educaon,screening, and treatment of these cancersand to support outrach programs for familis
impactd by this disas.
Pillar 3: Promong Environmental sustainability
In 2011, the Bank began to implement itsEnvironmental and Social Policy which was
approved in late 2010. The main objecve ofthis policy is to ensure that the Bank nancesprojects which have minimal adverse impactson the environment while ensuring that thosehaving potenally major adverse environmentaland social impact ar accompanid by adquat
migaon measures.
In line with the general objecve, the Bankspecically endeavours to ensure that:
Thr ar guidlins and procdurs in plac
to assess the environmental impact of allprojects before commitments and;
Complianc to ths procdurs and
guidlins ar adhrd to.
In addion, the Bank in its ordinary courseof businss is consciously mindful of its
environmental obligaons both internally andexternally and has invested in the followinginiaves during the year:
Saving Trees by introducing paperless means of
communicaon in business
Since the end of 2010, the Bank has introduced
lctronic basd bank statmnts and us oflctronic channls such as mobil and intrnt
banking for th customrs to accss thir
accounts without prinng statements. These
Corporat Social Rsponsibility Rport
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iniaves are designed to save paper whichhelps maintain Rwandas clean environment.These iniaves also extend to the awarenesscampaigns to sensize to our customersand sta on the need for environmental
sustainability. The Bank will connuously investin promong paperless business operaons andcommunicaon.
Mountain Gorilla conservaon
Th Bank maintaind its partnrship with th
Rwanda Development Board in supporng theannual gorilla naming, Kwita Izina ceremony.Rwandas mountain gorillas contribut almost
90% of revenues accrued from naonal parks intourism receipts, and are a key driver of rural
conomic and social mpowrmnt spcially inthe communies surrounding the naonal park.
Employee-led Parcipaon in community
work, Umuganda
In the spirit of the naonal pracce of Umu-ganda, our sta parcipate in community workon a monthly basis. Given our extensive branchnetwork, our community parcipaon is spread
naonwide. Moreover on a quarterly basis, ouremployees engage in a specialized Umuganda indierent communies.
In 2011, our sta parcipated in the followingacvies as part of its community work:
Planng of trees to enhance aorestaonand re-forestaon;
Creang terraces to eliminate soil erosion inmountainous agricultural arable land and;
General cleaning of the city.
Pillar 4: Eliminaon of poverty
The Banks approach to reducing poverty istwo prongd: We connue to improve accessto banking services for the underserved ruralpopulaon as well as support naonal pro-poorprogrammes both nancially and acvely.
Improving access to banking services to the
underserved rural populaon
As part of our branch expansion strategy, Bankof Kigali is dtrmind to opn branchs in rural
aras in ordr to act as a catalyst for conomic
development in those areas. In 2011, we opened
7 branchs in rural aras.
Th Bank furthr introducd Community
Oriented products targeng mainly the unbankedand underserved. The three products are part ofth Banks strategy to extend nancing to threepopulaon groups women, youth and seniorrered cizens which have historically beenunderserved. Moreover, the products combine asavings and loans products in recognion of theneed to improve savings culture in Rwanda aswell as limited access to nance.
Corporat Social Rsponsibility Rport
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Promong decent housing:An-Nyakatsicampaign
In the year under review, the Bank connued its dedicaon to promote decent housing. In this regard,we connued to parcipate in the naonal An-Nyakatsi campaign at provincial level. In addion oursta parcipated in building and creang decent housing for a genocide survivor in Gasabo district.
Bank of KigaliBank of KigaliYourTrustedPartnerinWealthCreaon
In 2012, the Bank will connue to implement a robust CSR strategy. The Bank aims to form more
strategic alliances with established organizaons whose work is focused in any areas encompassed
by our CSR strategy. We intend to increase the number of employee-led CSR iniaves to promote
the Rwandan culture of community-led development. We will also connue to promote integraon
of CSR principles in the Banks day-to-day operaons.
Conclusion
In order to improve the livelihoods of rural families, the Bank connued its support for the naonalGirinka programm also known as One cow per poor family. The programme is aimed at improvinglivelihoods through the reducon of malnutrion as well as increasing household incomes by providingfamilies with an addional source of income.
Girinka programme
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Bank of Kigali is commied to upholding
high standards of Corporate Governancein compliance with the Naonal Bank of
Rwandas regulaons on Corporate Governance,
Rwandas Law relang to companies, the Banking
Law as well as the Capital Markets Authority.
Shareholders Responsibilies
In accordance with the Law relang to companies,
Shareholders have the primary role to appoint
th Board of Dirctors and th extrnal Auditors.This rol is xtndd to holding th Board
accountable and responsible for ecient and
eecve governance. The responsibility of the
Sharholdrs is xrcisd through th Annual
and Extraordinary General Meengs.
Shareholding Structure
In 2011, the Banks shareholding structure
changed signicantly. In an Extraordinary General
Meeng held on 4 May 2011, the shareholders
resolved to split the shares 1:11,000. It was
further resolved to issue an addional 25% new
shars. This brought th total numbr of issud
shares to 667,337,000 shares.
Following the change in shareholding structure,
the shareholders resolved to sell 45% of the
Banks shares to the public through an Inial
Public Oer. The shares sold comprised of 25%
new shares issued as well as 20% divesture by
the Government of Rwanda. On 1 September
2011, the Bank became the second domesc
company to b listd on th Rwanda Stock
exchang.
The table below shows the Banks Shareholding as at 31 December 2011.
Shareholder Number of Shares
Percentage of Issued
Shares
Government of Rwanda 198,534,600 29.75%
Rwanda Social Security Board (RSSB) 181,328,800 27.17%
Blackeney Management 48,772,300 7.31%
Other State Owned Enes 687,900 0.10%
Local Instuonal Investors 16,511,700 2.47%
Regional Instuonal Investors 30,030,400 4.50%
Internaonal Instuonal Investors 71,349,500 10.69%
employs & Dirctors 7,200,000 1.08%
Retail Investors 112,921,800 16.92%
Total 667,337,000 100.00%
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Boards responsibilies
The Board of Directors is responsible for providingleadership through oversight and guidance on keystrategic, risk management and internal control
issues. The Board also ensures that Managementconducts its business and operaons withintgrity and in accordanc with bst corporatgovernance pracces based on transparency,accountability and rsponsibility. It also nsurscompliance with relevant laws and regulaonsand risk managmnt as th Bank balancs thinterests of the various stakeholders. In order to
achieve this, the Board has established a BoardCharter to guide its funcons. The Board meetson a quartrly basis or mor frquntly as thbusinss dmands. Th Board has also appointdfour sub-commiees to assist in achieving its
mandat.
The Board also conducts a self evaluaon exercisein compliance with the highest internaonalstandards which is submied to the CentralBank. In 2011, the Board held six meengs. Thetable below indicates the directors aendanceof board and board commiee meengs.
Structure Category Number of BoardMeengs
Audit & Riskcommiee
Credit
Commiee
ALCO
Commiee
Nominaons &
Remuneraon
Commiee
Number of Meengs held 6 4 11 4 2
Lado Gurgenidze Non-execuve 6
Sudadi S.Kayitana Non-execuve 6 4 9
Caleb Rwamuganza Non-execuve 6 10 4
Apollo M. Nkunda Non-execuve 5 3 2
Marc Holtzman Non-execuve 4
Dava Mukeshimana Non-execuve 6 3 4
Alphonsin Niyigna Non-execuve 6 3 10
Perrine Mukankusi Non-execuve 5 3 2
Directors aendance in Board and Board Commiee meengs
Corporate Governance Report
During the year, eight independent non-execuve directors served on the Board. Mrs. Perrine
Mukankusi resigned from the Board on 15 October, 2011.
Composion of the Board of Directors
Dirctors ar appointd by th Sharholdrs onrecommendaon from the Minister of Financeand economic Planning. In accordanc with thBanks Memorandum and Arcles of Associaon,the appointments are raed at the next AnnualGeneral Meeng (AGM). The Directors are alsoapproved by the Naonal Bank of Rwanda as argulatory rquirmnt.
Th Board compriss two non rsidnt dirctorswith extensive experse in internaonal bankingpracces as well as six resident directorsincluding a professional accountant, a praccinglawyer, and other private sector and governmentrepresentaves with extensive businessacumen. The wide array of skills, knowledge andexperiences is a major contribuon to the properfunconing of the board and its commiees andnrichs th dcision-making procsss.
Board Commiees
In lin with th BNR guidlins 06/2008 onCorporate Governance, the Board has four Board
Commiees, each with terms of reference, tosupport th Board in performing its funcons.
Credit Commiee
The commiee comprises of three independentnon-execuve directors who meet monthlyor mor frquntly as its businss dmands.It oversees the banks loan porolio creditrisk management. The commiee is charged
with reviewing credit facility applicaons thatare beyond the discreonary limits of themanagement credit commiee. The commieealso oversees the Banks lending policies andprocdurs to nsur that thr is adquat riskmanagement in addion to monitoring the loanporolio to maintain high asset quality.
Audit Commiee
This is the principal Board Commiee thatcomprises of four independent non execuveboard mmbrs and mts on quartrly basisor mor frquntly as its businss dmands.The Audit Commiee is responsible for ensuring
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that th Banks intrnal controls and procdurs
are adequate and adhered to, makingrecommendaons where necessary. It is alsocharged with the appointment and review of thework of th xtrnal auditors. This also xtnds
to overseeing the Banks nancial reporngpolicis and disclosurs to nsur that thy
are produced in accordance with InternaonalFinancial Reporng Standards and meet the allth ncssary rgulatory rquirmnts.
Risk Commiee
This Commiee comprises of four independentnon execuve board members and meetson quartrly basis or mor frquntly as its
businss dmands. Th mandat of th Riskmanagement Commiee is to ensure that theBanks risk managmnt policis and procdurs
ar updatd to nsur that th risks ar proprly
tackled, eecvely controlled and managed.
Assets-Liability Management Commiee
The Board Asset-Liability ManagementCommiee comprises of three independent non-execuve directors and meets on quarterly basis
or mor frquntly as its businss dmands.It is rsponsibl for monitoring and managing
the Banks balance sheet to ensure that variousbusiness risks such as liquidity, capital, marketand currency risks are monitored and migates incomplianc with th Banks policis and Cntral
Bank guidlins.
Nominaons and Remuneraon Commiee
The Nominaons and Remuneraons Commiee
is composd of thr indpndnt non-execuve directors and meets once a yearor mor frquntly as its businss dmands.
It is rsponsibl for th appointmnt of and
remuneraon of the Board Members and alsonsuring that th Banks human rsourcs ar abl
to support the development and implementaonof the Banks strategy. This entails reviewingthe Human Resources policies and procedures,organizaonal structure, senior managementcomposion as well as remuneraon.
Management commiees
The Bank also has various ManagementCommiees in place to assist in the day to dayimplementaon of the banks strategy. These
includ:
Execuve Management Commiee
Credit Commiee
Assets-Liability Commiee
Human Resources Commiee
Procurement Commiee
Disclosures
RelatedPartyTransacons
During the nancial year 2011 there were nomaterially signicant transacons enteredinto between the Company and its promoters,dirctors or th managmnt or othr rlatd
pares that may have potenal conict with theintrsts of th Company at larg.
An Employee Share Ownership Plan (ESOP) wasintroduced during the Inial Public Oer and7,200,000 shares were allocated to the Directors
and employs.
Statutory Compliance, Penales and
Strictures
Th Company has complid with th
requirements of the Naonal Bank of Rwandaand the Law relang to Companies on all maersrlatd to th banking and company businss.
In 2011, the Bank also began to comply with therequirements of the Capital Markets Authority
and the Rwanda Stock Exchange. No penales orrestricons have been imposed on the Companyby these authories.
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Our Team
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Lado Gurgenidze, Chairman
Lado Gurgenidze is a career banker who aer a decade spent at severalinvestment banks in Eastern Europe and London returned to his nave
Georgia in 2004 and spearheaded, as Execuve Chairman and CEO, aturnaround of Bank of Georgia (LSE: BGEO). During Lados three-year
tenure, the banks total assets and net income grew 760% and 1,563%,respecvely. As its market share grew from 18% to 34%, Bank of Georgia
became the leading universal bank in Georgia and the region withmarket capitalizaon exceeding US$900 million at the me of Ladosdeparture (up from US$30 million at the me of his arrival).
In 2007-2008, Lado served as Prime Minister of Georgia, leading theGeorgian economy through the nal stage of free-market reforms,
including tax cuts, nancial services sector reform as well as aggressiveprivasaon and liberalisaon policies.
Since he stepped down as Prime Minister, Lado has been a frequent
public spakr on issus of conomic librty and fr-markt rformsin developing countries and co-chairs the Emory Center for Alternave
Investments. In October 2009, he was invited to join, as Chairman, the
Board of Bank of Kigali, the largest bank in Rwanda.
In September 2009, Lado established, together with Dinu Patriciu,Liberty Investments, an investment company focusing on nancial services instuons in froner markets with low corrupon,low taxes and open economies. In the same month, Liberty Investments announced the acquision of a controlling equity
interest in Liberty Bank, which has the largest client base in Georgia, serving some 1.4 million clients and a branch network
of 274 branchs.
He is a Georgian and Brish cizen and received his MBA from Goizueta Business School of Emory University in 1993, followingundergraduate studies at Middlebury College and Tbilisi State University.
Sudadi S. Kayitana, Director
Sudadi Kayitana is a pracsing Accountant with wide experience in Finance and Audit. He has
served in the Public and Private sector, and internaonal community organisaons includingUNDP.
Sudadi also serves as a director on the Regulatory Board of Rwanda Ulity Regulatory Agency(RURA) and RwandaAir. He is a member of the Governing Council of the Instute of CeredPublic Accountants of Rwanda (ICPAR).
He is a founding member of the Instute of Cered Public Accountants of Rwanda (ICPAR),He is an aliate of the Associaon of Cered Chartered Accountants (ACCA) UK. He is also
qualied professional of supply chain management and is a member of Instute of Purchasingand supply (MCIPS). He also holds an Associate degree in Accounng from the Naonal
University of Rwanda.
Bank of Kigali Board prole
Caleb Rwamuganza, Director
Caleb Rwamuganza is the Deputy Accountant General, Treasury Management at Ministry ofFinance and Economic Planning. He has extensive experience in the area of Accounng and
Finance and has served in the Ministry of Finance and Economic Planning since 2005 in variouscapacies including Technical Assistant to the Secretary to the Treasury. Prior to that, Caleb wasChief Accountant in the Oce of the President.
Caleb acts as lead Negoator on Government loans and manages the execuon of public debtobligaons and implementaon of debt related policy maers. Caleb also serves as a Director
on the Boards of RwandaAir and the Naonal Post Oce of Rwanda.
He holds a Master of Arts degree in Management and Finance from Southampton Solent
Southampton University (UK) and Bachelor of Business Administraon in Accounng fromNkumba University, Uganda.
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Alphonsine Niyigena, Director
Alphonsine is Vice Chairperson of the Rwanda Private Sector Federaon, Chairperson of theUnion Investments Corporaon (UIC), and Vice Chairperson of Liberal Professionals Chamber,
one of the nine chambers of the Rwanda Private Sector Federaon.
She also serves as the Board Chairperson of Military Medical Insurance, Board Member ofMotor Guarantee Fund and Rwanda Instute of Administraon and Management (RIAM).
Alphonsine is the Managing Director of Worldwide Iniaves SARL; a regional consulngrm registered in Rwanda and has conducted naonal and internaonal consultancies as an
independent consultant in the areas of Finance, Economic Planning, and Audit. Prior to joiningthe private sector, Alphonsine served in the Oce of Auditor General for 5 years as Senior
Auditor and tam ladr.
Alphonsine holds a Masters Degree in Business Administraon-Finance from MaastrichtUniversity, Netherlands.
Apollo M. Nkunda, Director
Apollo Nkunda is a pracsing Lawyer, and a Partner with Trust Law Chambers. He has over tenyears experience in legal pracce from both the Public and Private sector. Apollo specialises
in Banking and Finance Law, Labour Law and Government procurement. Prior to joining thePrivate sector, he was Head of Legal Services at the Naonal Tender Board, now the Rwanda
Procurmnt Authority.
Apollo holds a Masters degree in Business and Trade Law from Erasmus University Roerdam,
the Netherlands, and a Bachelors of Law from the Naonal University of Rwanda.
He is a member of the Rwanda Bar Associaon, the East African Law Society, an AssociateMember of the Chartered Instute of Purchasing and Supply, a founding member of the
Centre for Arbitraon and honorary counsel to the Kigali Golf Club.
Marc Holtzman, Director
Marc Holtzman is Vice Chairman of Barclays Capital. Prior to joining Barclays Capital in
August 2008, Marc served as Vice Chairman of ABN Amro Bank. Previously, as co-founderand President of MeesPierson EurAmerica (a rm which was acquired by ABN Amro) and as
Senior Adviser to Salomon Brothers, he lived and worked in Eastern Europe and Russia from
September 1989 unl October 1998.
Drawing on his early experience in helping develop Central Asias nance sector, Marc was
recently appointed by Kazakhstans Prime Minister to serve on the Board of Trustees of TheAlmaty Regional Financial Centre. In addion, he serves as Chairman of Meridian Capital, and
Non-execuve Chairman of Indus, a leading Indian oil and Gas Company listed on LondonsAIM market.
Marc is widely recognized as a leading authority on economic and polical developments inemerging markets. He also served as President of The University of Denver with approximately10,000 students and as Colorados rst Secretary of Technology. He draws on almost three
decades of polical and public service in The United States. He holds a Bachelor of Arts Degreein Economics from Lehigh University.
Dava Mukeshimana, Director
Dava is the Execuve Secretary for Duterimbere Asbl, a Women Entrepreneurial Associaon
and a micro nance instuon in Rwanda. Dava has vast experience with programmemanagement and nancing of NGOs, especially gender related programmes.
She has managed instuonal nances including resource mobilizaon and has managedhuman resources at operaon and strategic levels.
Dava holds a Bachelors degree in Economics, with a major in Money and Banking from Kigali
Independent University and an MSc in Project Management from Bujumbura University.
Bank of Kigali Board prole
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James Gatera, Chief Execuve Ocer
James Gatera has been the Managing Director and Chief Execuve Ocerof Bank of Kigali since 2007. Under his stewardship, Bank of Kigali has had
sustained periods of protability and market leadership across all key balance
sht mtrics.
As a rm believer in increasing access to the unbanked in Rwanda, James is at thehelm of execung the Banks strategy to making banking services available and
within the reach of the majority of Rwandans. He has spearheaded the Banksaggressive branch expansion strategy as well as the Banks connual roll-out ofinnovave products to reach the unbanked populaon. In 2011, James led the
Bank through a successful Inial Public Oering to raise capital for the Banksexpansion strategy and Bank of Kigali became the second domesc company to
list on th Rwanda Stock exchang.
During his tenure, the Bank has been internaonally recognized for its
performance as the Best Bank in Rwanda by emeanance and has been awarded
th Bank of th Yar for Rwanda sinc 2009 by th Financial Tims of London.The Bank has also been rated A+/A1 by the Global Credit Rang Agency of South
Africa. In 2011, the Bank was further awarded the Company of the Year Award
by the Kenya Instute of Management.
Over the years, James has accumulated vast experience in Corporate Governance and currently serves as a non-execuveChairman, and Director on various Boards including Commonwealth Business Council (CBC).
James is oen a key speaker in many internaonal and African business forums including the CBC and the East African
Community.
Previously, James was the Deputy Managing Director in Bank of Kigali from 2005-2007. He played a key role in leading the
Bank when Belgolaise SA sold its 50% stake to the Government of Rwanda.
James holds a Bachelor of Arts degree majoring in Psychology from Simon Fraser University, Canada and Bachelor of Commerce
from Naonal University of Lesotho.
Lawson Naibo, Chief Operang Ocer
Lawson is the Chief Operang Ocer. He has been with the Bank since 2009. He has wide
experience in Strategic Management processes, Financial Accounng Advisory, Corporate
Governance, Risk Management and Compliance Advisory gained from over 15 years post
qualicaon experience previously in CFC Bank Group. Prior to joining the Bank, Lawson was
an Associate Director specialising in Transacon Services at KPMG East Africa.
Lawson is a qualied Business Strategy and Financial Services Advisor and holds an MBA in
Strategic Management and a Bsc in Financial Services. He is also a Qualied Accountant and
Chartered Banker and a Cered Trainer in Corporate Governance.
Flora Nsinga, Chief Shared Services Ocer
Flora is the Chief Shared Services Ocer. Prior to this, she was the Head of Human Resources
and Administraon Department and has been with the Bank since 2008. Flora joined with aboutten years experience from the telecommunicaons industry.
Flora has been responsible for the growth in branch network and sta since 2008 and she wasa focal point in managing the consultants charged with organisaonal reforms in 2009. She is
also rsponsibl for th growth of th branch infrastructur which has sn th Banks branch
network grow from 14 in 2008 to 44 in 2011. She has overseen the Banks strategic humanresources restructuring from a product driven structure to a customer focused structure. In
addion, she has overseen the supply and demand side of the banks human capital with sta
complmnt of 284 in 2008 and 602 in 2011.
Flora holds a Bachelors degree in Business Administraon with specialisaon in Human
Resources from Kigali Instute of Science, Technology and Management (KIST).
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John K. Bugunya, FCCA, Chief Finance Ocer
John is the Chief Finance Ocer. He has been with the Bank since 2009 and he brings in a wealthof experience from nancial advisory and assurance services gained from over 6 years post
qualicaon experience with Ernst & Young and Deloie. Prior to joining the Bank, John workedas an Audit Manager at Deloie in the United Kingdom specialising in nancial services.
John is responsible for overseeing the development and implementaon of the strategic and
statutory nancial reporng informaon systems. He is also responsible for the management
of funding rquirmnts.
John holds a Bachelors degree in Business Administraon from Makerere University-Uganda,MBA-Accounng & Finance from Oxford Brookes University, UK and is a Fellow of the Associaon
of Cered Chartered Accountants UK (ACCA).
Patrick Masumbuko, Head of Corporate BankingPatrick is th Head of Corporate Banking Department. Prior to holding this posion he was
the Corporate Banking Manager. Patrick joined the Bank in 2011 with seven years experiencefrom the Banking sector and private sector. He also held various posions in Non Governmental
Organizaons.
Patrick holds a Bachelor of Commerce degree from Kigali Instute of Science Technology
and Management and Diploma in Business Studies from Naonal College of Business Studies
Nakawa.
Enock K. Luyenzi, Head of Human Resources & Administraon
Enock is the Head of Human resources and Administraon. Prior to that, he served as the
General Services Manager at the Bank since 2009. He joined the Bank with over seven years
experience in supply chain management, logiscs and administraon from the public sector.
Enock has been responsible for eciently managing and overseeing the procurement processof the Bank as well as execung the bank expansion strategy since 2009.
Enock holds a Bachelor s Degree in Management from the Naonal University of Rwanda.
Shivon Byamukama, Company Secretary & Head of Corporate Aairs
Shivon is the Company Secretary/ Head of Corporate Aairs Department. She joined the Bankfrom RwandAir where she served as the Company Secretary and Chief Legal Ocer since 2009.During her me at RwandAir, she was instrumental in the negoaons for the acquision oftheir new aircras and their nancing agreements.
She joins the Bank with a wealth of experience in contract negoaons. Shivon has also
worked with the Internaonal Criminal Court at the Hague and taught at Glasgow Caledonian
University.
She holds a PhD in Law from Glasgow Caledonian University, a Diploma in Legal Pracce from
the Law Development Centre (LDC) Kampala Uganda and a Bachelor of Laws from MakerereUniversity, Uganda.
Execuve Management Prole
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Bank of KigaliBank of Kigali
Adolphe Ngunga, Head of Retail Branch Network
Adolphe is the Head of Retail Branch Network, and has been in the Bank for over 10 years.
Adolphe has held various posions in the Bank including Branch Management, CorporateBanking and Head of Retail Banking. He has been instrumental in driving growth of the Banks
rtail customr sgmnt across our xpanding branch ntwork.
Adolphe holds a Bachelor s degree in Economics from the University of Bujumbura in Burundi.
Allan Mwangi, Head of Retail Credit Risk
Allan is the newly appointed Head of Retail Credit Risk. Prior to joining Bank of Kigali, Allan was
a Director at Dhamana Africa; a consultancy rm engaged in providing nancial consultancy andbusiness advisory services.
He brings to the Bank vast experience in business planning, nancial management, accounng,risk management and audit with over 16 years in the nancial services industry gained from
working in Equity Bank, Deloie and Touche, Lonrho Africa Plc and ABN Amro Bank.
He holds an MBA (Finance) from University of Nairobi and a Bachelor of Commerce (Accounng)
degree from Kenyaa University. He is Cered Public Accountant and alumni of the AdvancedManagement Programme (AMP) of the IEESE Business School, Spain and Strathmore Business
School, Kenya. He is a member of the Instute of Cered Public Accountants of Kenya (ICPAK).
Innocent Musominari, Head of Credit Department
Innocnt is th Had of Crdit and has workd with th Bank sinc 2004. H has wid xprinc
in crdit analysis and managmnt gaind from working within th Rwandan Banking sctor for
14 years. He has been pivotal in managing the Banks credit risk and this has led to improvements
in asst quality.
Innocent holds a Bachelor s degree in Economics from the Naonal University of Rwanda.
Execuve Management Prole
CorporateGovernance
Moat Mwangi, Head of Consumer Banking and Product Development
Moat is the newly appointed Head of Consumer Banking and Product Development. Priorto joining Bank of Kigali, Moat was a Senior Manager Risk Control Unit Corporate Credit at
Barclays Bank Knya.
Moat has been in the banking sector for 25 years and brings to the Bank a spectrum of skillsand knowledge gained from his experience in Operaons, Retail Banking, Card Business and
Businss Banking in Barclays Bank in Knya.
He holds a BSc in Financial Services from the University of Manchester Instute Of Science and
Technology (UMIST), MBA degree from Middlesex University Business School London and is anAssociate of the Chartered Instute of Bankers (ACIB).
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Alex Ngabonziza, Head of Informaon and Communicaons Technology
Alex is the Head of Informaon and Communicaon Technology and has been with the Bank since2009, having joined with over 14 years of experience in the industry. He has been instrumental
in developing the Banks IT capabilies through the computerizaon and networking of thebranches and other distribuon channels to support the growth of the Banks distribuon
ntwork.
Prior to joining the Bank, Alex was Head of Applicaons Division in Rwanda Revenue Authority.He has also worked as an IT consultant for the Department for Internaonal Development and
Head Developer and Database Administrator at Alpha-So, a soware development rm.
Alx holds a Bachlors dgr in Tchnical elctromchanical enginring and Bachlors
degree in Informaon Technology, from the Naonal University of Rwanda.
Yves Gatsimbanyi, Head of Risk & Compliance
Yves has been the Head of Risk and Compliance since early 2010. Yves joined the Bank havingserved as a Bank Examiner at the Naonal Bank of Rwanda for 10 years. Previously he has also
held posions in Internal Control and Compliance within the Banking sector in Rwanda.
He holds a Bachelors degree in Economics from the Naonal University of Rwanda and aDiploma in Risk Management.
Gerald Nyangezi, Head of Internal Audit
Gerard heads the Internal Audit and Control Department. He joined the Bank in 2009 andhas over 10 years experience in Audit and Finance especially from the nancial sector and
telecommunicaon industry.Gerard holds a Bachelor of Commerce, Finance from Makerere University, Uganda, andBachelors of Accounng degree from Transkei University, Republic of South Africa. He is a
Qualied Accountant and a member of the Associaon of Cered Chartered Accountants ofUnited Kingdom (ACCA) as well as a member of Instute of Cered Public Accountants Rwanda
(ICPAR).
Execuve Management Prole
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Financial Rports
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BANK OF KIGALI LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
31 DECEMBER 2011
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Principal Place of Business
Bank of Kigali LtdAvenue de la Paix
P.O. Box 175
Kigali - Rwanda
Registered Oce
Bank of Kigali Ltd
Avenue de la Paix
P.O. Box 175
Kigali - Rwanda
Lawyers
Mr. Emmanuel Rukangira
P.O Box 3270
Kigali Rwanda
Mr. Athanase Rutabingwa
P.O. Box 6886
Kigali - Rwanda
BankersNaonal Bank of Rwanda
P.O Box 531
Kigali-Rwanda
Company Secretary
Shivon Byamukama
Bank of Kigali Building
Avenue de la Paix
P.O. Box 175
Kigali - Rwanda
Bank Auditors
Ernst & Young (Rwanda) SARL
Cered Public Accountants
Bank of Kigali Building
Avenue de la Paix
P.O. Box 3638
Kigali - Rwanda
Bank of KigaliBank of KigaliBANK OF KIGALI LTD
BANK INFORMATION
FinancialSta
tements
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The Directors have the pleasure in subming their report together with, the audited nancial statements
for the year ended 31 December 2011 which discloses the state of aairs of the Bank.
1. Principal Acvity
The Bank is a commercial bank that oers corporate and retail banking services and is licensed
under the Laws and Regulaons governing Banks in Rwanda.
2. Results
Th rsults for th yar ar st out on pag 37.
3. Dividend
The directors recommend a dividend payment of Rwf 6.5 per share (Rwf 4,344 million) for theapproval of shareholders at the Annual General Meeng. (2010: Nil)
4. Reserves
The reserves of the Bank are set out on page 64, note 17.
5. Directors
The directors who served during the year and to the date of this report were:-
Mr. Lado Gurgenidze - Chairman
Mr. Marc Holtzman
Mr. Caleb Rwamuganza
Mrs. Perrine Mukankusi - Resigned 15 October 2011
Mr. Apollo Nkunda
Mrs. Alphonsine Niyigena
Mrs. Dave Mukeshimana
Mr. Sudadi Kayitana
6. Auditors
Ernst & Young (Rwanda) SARL were appointed auditors of the Bank in 2008 and have rotated out
in compliance with Naonal Bank of Rwanda Regulaons.
By Order of the Board
Company Scrtary
...........................
BANK OF KIGALI LTD
REPORT OF THE DIRECTORS
YEAR ENDED 31 DECEMBER 2011
FinancialSta
tements
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The Law No: 07/2009 of 27/04/2009 relang to Companies requires the directors to prepare nancial
statements for each nancial year, which give a true and fair view of the state of aairs of the Bank asat the end of the nancial year and of its operang results for that year. It also requires the directors
to ensure the Bank keeps proper accounng records which disclose, with reasonable accuracy the
nancial posion of the Bank. They are also responsible for safeguarding the assets of the Bank.
The directors accept responsibility for the annual nancial statements, which have been prepared using
appropriate accounng policies supported by reasonable and prudent judgments and esmates in
conformity with Internaonal Financial Reporng Standards and the requirements of Law No: 07/2009
of 27/04/2009 relang to Companies. The directors are of the opinion that the nancial statements
give a true and fair view of the state of the nancial aairs of the Bank and of its operang results.
The directors further accept responsibility for the maintenance of accounng records which may be
relied upon in the preparaon of nancial statements, as well as adequate systems of internal nancialcontrol.
Nothing has come to the aenon of the directors to indicate that the Bank will not remain a going
concern for at least the next twelve months from the date of this statement.
................
Dirctor
................
Dirctor
Dat
Bank of KigaliBank of KigaliBANK OF KIGALI LTD
STATEMENT OF DIRECTORS RESPONSIBILITIES
FOR THE YEAR ENDED 31 DECEMBER 2011
FinancialSta
tements
7/28/2019 Bank of Kigali Annual Report 2011
36/9634
Report on the Financial Statements
We have audited the accompanying nancial statements of Bank of Kigali Ltd as set out on pages 36 to88, which comprise the statement of nancial posion as at 31 December 2011, the income statement,
statement of comprehensive income, statement of changes in equity and statement of cash ows for
the year then ended and, a summary of signicant accounng policies and other explanatory notes.
Directors Responsibility for the Financial Statements
The directors are responsible for the preparaon and fair presentaon of the nancial statements in
accordance with Internaonal Financial Reporng Standards and in the manner required by Law No:
07/2009 of 27/04/2009 relang to Companies and Laws and Regulaons governing Banks in Rwanda,
and for such internal control as the directors determines necessary to enable the preparaon of
nancial statements that are free of material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these nancial statements based on our audit. We
conducted our audit in accordance with Internaonal Standards on Auding. Those standards require
that w comply with thical rquirmnts and plan and prform th audit to obtain rasonabl
assurance about whether the nancial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the nancial statements. The procedures selected depend on the auditors judgment, including the
assessment of the risks of material misstatement of the nancial statements, whether due to fraud orerror. In making those risk assessments, the auditor considers internal control relevant to the Banks
preparaon and fair presentaon of the nancial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
eecveness of the Banks internal control. An audit also includes evaluang the appropriateness of
accounng policies used and the reasonableness of accounng esmates made by the directors, as
well as evaluang the overall presentaon of the nancial statements.
We believe that the audit evidence we have obtained is sucient and appropriate to provide a basis
for our audit opinion.
Opinion
In our opinion, the nancial statements present fairly in all material respects, the nancial posion of
the Bank as at 31 December 2011, and of its nancial performance and its cash ows for the year then
ended in accordance with Internaonal Financial Reporng Standards and in the manner required by
Law No: 07/2009 of 27/04/2009 relang to Companies and Laws and Regulaons governing banks in
Rwanda.
REPORT OF THE INDEPENDENT AUDITORS
TO THE MEMBERS OF
BANK OF KIGALI LTD
FinancialSta
tements
7/28/2019 Bank of Kigali Annual Report 2011
37/9635
Report on other Legal and Regulatory Requirements
The Law No: 07/2009 of 27/04/2009 relang to Companies which was promulgated on 27 April 2009requires that in carrying out our audit, we consider and report to you on the following maers. We conrm
that:
i) We have no relaonship, interests and debts in the Bank;
ii) We have obtained all the informaon and explanaons which to the best of our knowledge
and belief were necessary for the purpose of our audit;
iii) In our opinion, proper books of account have been kept by the Bank, so far as appears from our
examinaon of those books;
iv) We have communicated to you through the management leer, internal control weaknesses
idened in the course of our audit including our recommendaons with regard to those
maers.
ALLAN GICHUHI
FOR ERNST & YOUNG RWANDA SARL
KIGALI
..2012
Bank of KigaliBank of KigaliREPORT OF THE INDEPENDENT AUDITORS (Connued)
TO THE MEMBERS OF
BANK OF KIGALI LTD
FinancialSta
tements
7/28/2019 Bank of Kigali Annual Report 2011
38/9636
Note 2011 2010
Assets Rwf000 Rwf000
Cash in hand 3 8,123,088 6,881,845
Cash balances with the Naonal Bank of Rwanda 4 61,621,376 22,562,505
Du from banks 5 51,994,652 38,452,178
Loans and advances to customers 6 123,130,687 101,402,657
Financial investments held-to-maturity 7 8,190,524 5,224,395
Financial investments available-for-sale 8 218,455 268,375
Other assets 9 14,920,439 4,390,670
Intangibl assts 10 146,350 180,604
Proprty and quipmnt 11 19,554,303 18,313,417
Total Assts 287,899,874 197,676,646
Liabilies and Equity
Customr dposits 12 181,019,654 135,677,746
Du to banks 13 19,090,060 18,920,636
Tax payabl 26(a) 137,024 496,816
Other payables 14 18,725,051 6,841,124
Long trm dbt 15 4,998,112 -
Dfrrd tax 26(b) 2,345,641 3,870,437
Total Liabilies 226,315,542 165,806,759
equityShar capital 16 6,673,370 5,005,000
Revaluaon 17 (a) 7,763,446 7,150,542
Reserves 17 (b) 37,947,998 13,535,763
Rtaind arnings 17 (c) 9,199,518 6,178,582
Total equity 61,584,332 31,869,887
Total Liabilies And Equity 287,899,874 197,676,646
These nancial statements were approved by the Board of Directors on .. 2012 and signedon its bhalf by:-
......................
Dirctor
......................
Dirctor
BANK OF KIGALI LTD
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2011
FinancialSta
tements
7/28/2019 Bank of Kigali Annual Report 2011
39/9637
Note 2011 2010
Rwf000 Rwf000
Intrst and similar incom 18 22,671,124 16,368,740
Intrst and similar xpns 19 (6,075,680) (4,182,666)
Nt intrst incom 16,595,444 12,186,074
F and commission incom 20 4,326,856 3,022,031
Forign xchang gains 21 7,643,851 5,247,543
Other income 22 888,719 691,381
Total operang income 29,454,870 21,147,029
Impairment loss on loans and advances 6(e) (4,544,321) (2,376,281)
Impairment loss on available-for-sale investments 8(b) (49,920) (46,733)
Net operang income 24,860,629 18,724,015
Prsonnl xpnss 23 (7,070,435) (5,038,341)
Amorsaon 10 (146,348) (180,602)
Depreciaon 11 (2,285,972) (1,357,181)
Operang expenses 24 (4,703,966) (3,466,499)
Total operang expenses (14,206,721) (10,042,623)
Prot before tax 10,653,908 8,681,392
Incom tax xpns 26(a) (1,965,143) (2,502,810)
Prot for the year 8,688,765 6,178,582
earnings pr shar:
Basic and dilutd arnings pr shar 27 15.62 12.34
Bank of KigaliBank of KigaliBANK OF KIGALI LTD
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2011
FinancialSta
tements
7/28/2019 Bank of Kigali Annual Report 2011
40/9638
Note 2011 2010
Rwf000 Rwf000
Prot for the year 8,688,765 6,178,582
Other comprehensive income net of taxes:
Revaluaon net of deferred tax - 7,150,542
Eect of change in tax rate on revaluaon 17 (a) 1,021,506 -
Other comprehensive income net of taxes 1,021,506 7,150,542
Total comprehensive income net of taxes 9,710,271 13,329,124
BANK OF KIGALI LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2011
FinancialSta
tements
7/28/2019 Bank of Kigali Annual Report 2011
41/9639
ShareCapital
Share
Premium
Retained
Earn
ings
Revaluaon
Reserve
Legal
reserves
Special
Reserves
OtherReserves
Total
Rwf000
Rwf000
Rwf000
Rwf000
Rwf000
Rwf000
Rwf000
Rwf000
At1January2010
5,005,000
-
2,643
,481
-2,272,254
2,357,488
6,262,540
18,540,763
Divid
endsdeclared
-
-
-
-
-
-
-
-
Appr
opriaonofRetainedProt
17(c)
-
-(2,643,481)
-
528,636
528,636
1,586,209
-
TotalComprehensiveIncome:
O
thercomprehensiveincome
-
-
-
7,150,542
-
-
-
7,150,542
P
rotfortheyear
-
-
6,178
,582
-
-
-
-
6,178,582
At31
Dcmbr2010
5,005,000
-
6,178
,582
7,150,542
2,800,890
2,886,124
7,848,749
31,869,887
At1January2011
5,005,000
-
6,178
,582
7,150,542
2,800,890
2,886,124
7,848,749
31,869,887
Divid
endsdeclared
-
-
-
-
-
-
-
-
Nw
sharIssu
16
1,668,370
18,233,653
-
-
-
-
-
19,902,023
Appr
opriaonofRetainedProt
17(c)
-
-(6,178,582)
-
617,858
617,858
4,942,866
-
DfrrdTax
-
-
-
102,151
-
-
-
102,151
Total
ComprehensiveIncome:
Ot
hercomprehensiveincome
-
-
-
-
-
-
-
E
ectofchangeintaxrate
1,021,506
1,021,506
Transferofexcessdepreciaon
-
-
510
,753
(510,753)
-
Protfortheyear
-
-
8,688
,765
-
-
-
-
8,688,765
At31
Dcmbr2011
6,673,370
18,233,653
9,199
,518
7,763,446
3,418,748
3,503,982
12,791,615
61,584,332
Bank of KigaliBank of KigaliBANK OF KIGALI LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2011
FinancialSta
tements
7/28/2019 Bank of Kigali Annual Report 2011
42/9640
Note 2011 2010
Rwf000 Rwf000
Operang Acvies
Prot before taxaon 10,653,908 8,681,392
Adjustment for:
Depreciaon 2,285,972 1,357,181
Amorsaon of intangible assets 146,348 180,602
Dividends received (33,180) (10,477)
Impairment on available-for-sale investments 49,920 46,733
Cash ows generated from operang acvies before
changs in working capital 13,102,968 10,255,431Loans and advances to customers (21,728,030) (24,306,791)
Other assets (10,529,769) (1,112,872)
Customr dposits 45,341,908 26,194,942
Other payables 11,822,067 2,452,533
Cash ows generated from operaons 38,009,144 13,483,243
Incom taxs paid 26(a) (2,714,134) (2,911,451)
Net cash ows from operang acvies 35,295,010 10,571,792
Invesng Acvies
Purchase of held to maturity investments (2,916,209) 7,088,511
Dividends received 33,180 10,477
Purchas of proprty and quipmnt (3,526,858) (3,080,383)
Purchas of intangibl assts (112,094) (344,313)
Net cash ows used in invesng acvies (6,521,981) 3,674,292
Financing Acvies
Dividends paid - (2,643,482)
Nw shars issud 19,902,023 -
Nw loans raisd 4,998,112 -
Net cash ows used in nancing acvies 24,900,135 (2,643,482)
Net increase in cash and cash equivalents 53,673,164 11,602,602
Cash and cash equivalents at 01 January 48,975,892 37,373,290
Cash and cash equivalents at 31 December 28 102,649,056 48,975,892
BANK OF KIGALI LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2011
FinancialSta
tements
7/28/2019 Bank of Kigali Annual Report 2011
43/9641
1. Corporate Informaon
Bank of Kigali Limited is a nancial instuon licensed to provide corporate and retail banking services tocorporate, small and medium size enterprises and retail customers in various parts of Rwanda.
Th Bank is a limitd liability company incorporatd and domicild in Rwanda.
The nancial statements for the year ended 31 December 2011 were authorised for issue in accordance with aresoluon of the directors on 29 March 2012.
2. Accounng Policies
2.1 Basis of preparaon
The nancial statements have been prepared on a historical cost basis, except for certain nancial instrumentsthat have been measured at fair value. The nancial statements are presented in Rwandan Francs (Rwf) whichis the funconal and reporng currency and all values are rounded to the nearest thousand (Rwf000) except
whn othrwis indicatd.Statementofcompliance
The nancial statements of the Bank have been prepared in accordance with Internaonal Financial ReporngStandards (IFRS) as issued by the Internaonal Accounng Standards Board (IASB) except where otherwisenoted in the accounng policies.
Presentaonofnancialstatements
Th Bank presents its statement of nancial posion broadly in order of liquidity. An analysis regarding recoveryor selement within 12 months aer the statement of nancial posion date (current) and more than 12months aer the statement of nancial posion date (non- current) is presented in note 30.
2.2 Changes in accounng policy and disclosures
Newandamendedstandardsandinterpretaons
The accounng policies adopted are consistent with those of the previous nancial year, except for thefollowing new and amended IFRS and IFRIC interpretaons eecve as of 1 January 2011:
The accounng policies adopted are consistent with those of the previous nancial year, except for thefollowing new and amended IFRS and IFRIC interpretaons eecve as of 1 January 2011:
IFRS 1 Limited Exempon from Comparave IFRS 7 Disclosures for First-me Adopters (Amendment) 1July 2010
IAS 24 Related Party Disclosures (amendment) eecve 1 January 2011IAS 32 Financial Instruments: Presentaon (amendment) eecve 1 February 2010IFRIC 14 Prepayments of a Minimum Funding Requirement (amendment) eecve 1 January 2011Improvements to IFRSs (May 2010) ) IFRIC 19 Exnguishing Financial Liabilies with Equity Instruments 1
July 2010
The adopon of the standards or interpretaons is described below:
IFRS 1 Limited Exempon from Comparave IFRS7 Disclosures for First-me Adopters(Amendment):-Theamendment to IFRS 1 is eecve for annual periods beginning on or aer 1 July 2010. The amendment allowsrst-me adopters to ulise the transional provisions of IFRS 7 Financial Instruments: Disclosures as theyrelate to the March 2009 amendments to the standard. These provisions give relief from providing comparaveinformaon in the disclosures required by the amendments in the rst year of applicaon. To achieve this, thetransional provisions in IFRS 7 were also amended. This is not applicable to the Bank as it is not a rst-meadoptr.
IAS 24 Related Party Transacons (Amendment):-The IASB issued an amendment to IAS 24 that claries thedenions of a related party. The new denions emphasise a symmetrical view of related party relaonshipsand claries the circumstances in which persons and key management personnel aect related partyrelaonships of an enty. In addion, the amendment introduces an exempon from the general related partydisclosure requirements for transacons with government and enes that are controlled, jointly controlledor signicantly inuenced by the same government as the reporng enty. The adopon of the amendmentdid not have any impact on the nancial posion or performance of the enty.
Bank of KigaliBank of KigaliBANK OF KIGALI LTD
NOTES TO THE FINANCIAL STATEMENTS (connued)
FOR THE YEAR ENDED 31 DECEMBER 2011
FinancialSta
tements
7/28/2019 Bank of Kigali Annual Report 2011
44/9642
2. Accounng Policies (Connued)
2.2. Changes in accounng policy and disclosures (connued)
IAS 32 Financial Instruments: Presentaon (Amendment):-The IASB issued an amendment that alters thedenion of a nancial liability in IAS 32 to enable enes to classify rights issues and certain opons orwarrants as equity instruments. The amendment is applicable if therights are given pro rata to all of the
exisng owners of the same class of an entys non-derivave equityinstruments, to acquire a xed number ofthe entys own equity instruments for a xed amount in any currency. This amendment had no impact on theBank as no such transacons were entered into.
IFRIC 19 Exnguishing Financial Liabilies with Equity Instruments:-IFRIC 19 is eecve for annual periods
beginning on or aer 1 July 2010. The interpretaon claries the accounng by an enty when the termsof a nancial liability are renegoated and result in the enty issuing equity instruments to a creditor of theenty to exnguish all or part of the nancial liability (debt for equity swap). The interpretaon claries that
equity instruments issued to a creditor to exnguish a nancial liability qualify as consideraon paid. Theequity instruments issued are measured at their fair value. In case that this cannot be reliably measured,the instruments are measured at the fair value of the liability exnguished. Any gain or loss is recognisedimmediately in income statement. The adopon of this interpretaon had no eect on the nancial posionor performance of the Bank as no such transacons were entered into.
IFRIC 14 Prepayments of a minimum funding requirement (Amendment):-The amendment to IFRIC 14is eecve for annual periods beginning on or aer 1 January 2011 with retrospecve applicaon. The
amendment corrects an unintended consequence of IFRIC 14, IAS 19 The limit on a dened benet asset,minimum funding requirements and their interacon. Without the amendments, enes are not permiedto recognise as an asset some voluntary prepayments for minimum funding contribuons. The amendmentprovides guidance on assessing the recoverable amount of a net pension asset. The amendment permits anenty to treat the prepayment of a minimum funding requirement as an asset. The amendment had no impact
on the nancial statements of the Bank, as no dened benet plans are used by the Bank.ImprovementstoIFRSs
In May 2010, the IASB issued its third omnibus of amendments to its standards, primarily with a view toremoving inconsistencies and clarifying wording. There are separate transional provisions for each standard.The following amendments have no impact on the nancial posion or performance of the enty.
IFRS 1 First-me Adopon of Internaonal Financial Reporng Standards (eecve from 1 January 2011)
Accounng policy changes in the year of adopon - The amendment claries that, if a rst-me adopter
changes its accounng policies or its use of the exempons in IFRS 1 aer it has published an interimnancial report in accordance with IAS 34 Interim Financial Reporng, it has to explain those changesand update the reconciliaons between previous GAAP and IFRS. This amendment had no impact onthe Bank, as the Bank already reports in terms of IFRS.
Revaluaon basis as deemed cost - The amendment allows rst-me adopters to use an event-drivenfair value as deemed cost, even if the event occurs aer the date of transion, but before the rst IFRSnancial statements are issued. When such re-measurement occurs aer the date of transion to IFRS,but during the period covered by its rst IFRS nancial statements the adjustment is recognised directly
in retained earnings (or if appropriate, another category of equity). This amendment had no impact onthe Bank, as the Bank already reports in terms of IFRS.
Use of deemed cost for operaons subject to rate regulaon - The amendment expands the scope ofdeemed cost for property, plant and equipment or intangible assets to include items used subject torate regulated acvies The exempon will be applied on an item-by-item basis. All such assets will alsoneed to be tested for impairment at the date of transion. The amendment allows enes with rate-regulate acvies to use the carrying amount of their property, plant and equipment and intangiblebalances from their previous GAAP as its deemed cost upon transion to IFRS. These balances may
include amounts that would not be permied for capitalisaon under IAS 16 Property, Plant andEquipment, IAS 23 Borrowing Costs and IAS 38 Intangible Assets. This amendment had no impact onthe Bank, as the Bank already reports in terms of IFRS.
BANK OF KIGALI LTD
NOTES TO THE FINANCIAL STATEMENTS (connued)
FOR THE YEAR ENDED 31 DECEMBER 2011
FinancialSta
tements
7/28/2019 Bank of Kigali Annual Report 2011
45/9643
2. Accounng Policies (Connued)
2.2. Changes in accounng policy and disclosures (connued)
IFRS 3 Business Combinaons: The measurement opons available for non-controlling interest (NCI) wereamended. Only components of NCI that constute a present ownership interest that entles their holderto a proporonate share of the entys net assets in the event of liquidaon should be measured at eitherfair value or at the present ownership instruments proporonate share of the acquirees idenable netassets. All other components are to be measured at their acquision date fair value.The amendments toIFRS 3 are eecve for annual periods beginning on or aer 1 July 2011. The amendment had no impact
on the nancial statements of the Bank.
IFRS 7 Financial Instrumnts Disclosurs: Th amndmnt was intndd to simplify th disclosurs
provided by reducing the volume of disclosures around collateral held and improving disclosures byrequiring qualitave informaon to put the quantave informaon in context. The Group reects the
revised disclosure requirements in the notes.
IAS 1 Presentaon of Financial Statements: The amendment claries that an enty may present an analysis
of each component of other comprehensive income maybe either in the statement of changes in equity orin the notes to the nancial statements.
Other amendments resulng from Improvements to IFRSs to the following standards did not have any impacton the accounng policies, nancial posion or performance of the enty
IFRS 3 Business Combinaons (Conngent consideraon arising from business combinaon prior to
adopon of IFRS 3 (as revised in 2008))
IFRS 3 Business Combinaons (Un-replaced and voluntarily replaced share-based payment awards)
IAS 27 Consolidatd and Sparat Financial Statmnts
IAS 34 Intrim Financial Statmnts
IFRIC 13 Customer Loyalty Programmes (determining the fair value of award credits)
Standardsissuedbutnotyeteecve
Standards issued but not yet eecve up to the date of issuance of the entys nancial statements are listedbelow. This lisng of standards and interpretaons issued are those that the enty reasonably expects tohavean impact on disclosures, nancial posion or performance when applied at a future date. The enty intendsto adopt these standards when they become eecve.
IAS 1 Financial Statement Presentaon Presentaon of Items of Other Comprehensive Income
The amendments to IAS 1 change the grouping of items presented in OCI. Items that could be reclassied
(orrecycled) to prot or loss at a future point in me (for example, upon derecognion or selement) wouldbepresented separately from items that will never be reclassied. The amendment aects presentaon onlyandhas there no impact on the entys nancial posion or performance. The amendment becomes eecveforannual periods beginning on or aer 1 July 2012.
IAS 19 Employee benets (Revised): - The amendments are eecve for annual periods beginning on or aer
1 January 2013. There are changes to post employee benets in that pension surpluses and decits are tobe recognised in full (no more deferral mechanisms) and all actuarial gains and losses recognised in othercomprehensive income as they occur with no recycling to the income statement. Past service costs as a resultof plan amendments are to be recognized immediately. Short and long-term benets will now be disnguishedbased on the expected ming of selement, rather than employee entlement. Although the Bank will not beimpacted by amendments relang to dened benet plans, the impacts on the denions of short-term andlong-term employee benets are sll being assessed.
Bank of KigaliBank of KigaliBANK OF KIGALI LTD
NOTES TO THE FINANCIAL STATEMENTS (connued)
FOR THE YEAR ENDED 31 DECEMBER 2011
FinancialSta
tements
7/28/2019 Bank of Kigali Annual Report 2011
46/9644
2. Accounng Policies (Connued)
2.2. Changes in accounng policy and disclosures (connued)
Standardsissuedbutnotyeteecve(connued)
IFRS 7 Financial Instruments: Disclosures Enhanced Derecognion Disclosure Requirements
The amendment requires addional disclosure about nancial assets that have been transferred but notderecognised to enable the user of the entys nancial statements to understand the relaonship with thoseassets that have not been derecognised and their associated liabilies. In addion, the amendment requiresdisclosures about connuing involvement in derecognised assets to enable the user to evaluate the nature of,and risks associated with, the entys connuing involvement in those derecognised assets. The amendment
becomes eecve for annual periods beginning on or aer 1 July 2011. The amendment has no impact on theentys nancial posion or performance.
IFRS 9 Financial Instruments: Classicaon and MeasurementIFRS 9 as issued reects the rst phase of the IASBs work on the replacement of IAS 39 and applies toclassicaon and measurement of nancial assets and nancial liabilies as dened in IAS 39. The standar