Zigama CSS Makes Rwf3bn Profit Past Target after Going Cashless

The Zigama CSS General Assembly-March 29th

 Zigama Credit and Savings Society (Zigama CSS) has announced surpassed its predicted targets for the financial year 2017.

The Rwandan Amy bank had earlier set its eyes on making a net profit of Rwf6.3billion after having recorded growth in clientele with over 10.000 customers coming on board in the last two years.

The bank officials said during the general assembly – Thursday that Zigama CSS performed beyond expectations making Rwf9.3 billion net profit in 2017.

Following its becoming a commercial bank in 2011, Zigama CSS made steady growth with a net profit of Rwf4.2 billion in 2014 before increasing to Rwf5.2billion net profit in 2015 and Rwf6.8 billion in 2016.

By September 2017, the bank had gathered Rwf228 billion in assets but closed the financial year with a total of Rwf247 billion in assets. This is in comparison to Rwf215 billion end of 2016 and Rwf170 billion in 2015.

DR JAMES NDAHIRO, chairman of ZIgama CSS speaks to the media

Major General Albert Murasira, the bank’s CEO attributed this growth to service delivery and innovative products moved by technology and development trends.

“As a financial cooperative, we are working hard to meet our members’ expectations by expanding our products and services but also disbursing flexible loans to clients,” said Maj. Gen. Murasira

In 2017, Zigama CSS offered close to Rwf84billion worth of loans.

“By keeping pace with the latest technologies, we are able to facilitate our client’s day-to-day financial needs, through mobile banking and digital banking which are now taking 55% of banking transactions,” Maj Gen. Murasira said.

The bank has a unique flexibility in offering loans. For example, a client can apply and get a short term loan worth Rwf140, 000 and service it with an interest rate of 13%.

The client can also get another loan of same amount even before finishing up the previous one, provided you are a loyal client who services the loan as per the loan contract.

Up to Rwf5 million, the bank’s interest rates are Rwf13%.

For loans amounting Rwf 25 million, the client has to raise between 17% and 18% which is the highest rate.

The timeline of servicing the loan varies between 12 months and 108 months.

Left to Right is CDF Gen. Patrick Nyanvumba, Minister of Defence Gen. James Kabarebe and Zigama CSS Board Chairman Dr. James Ndahiro

The bank also saw customer deposits grow to Rwf168 billion in 2017 from Rwf161 billion in 2016. In 2016, Zigama CSS was awarded by Rwanda Revenue Authority among the large tax payers.

The 2017 Zigama CSS General Assembly announced an increase on profits on insurance from 7percent to 8% and compulsory savings. Members also endorsed a 7% interest on personal savings accounts from 6%.

Zigama CSS Board Chairman, Dr. James Ndahiro said the bank’s performance is a result of two factors; a clientele that have discipline and the bank investing in cashless transactions.

“We have the lowest default rates because of our clients’ discipline but as a bank, we are not inclined on marking profits. The welfare of our clients is what comes first,” Ndahiro said.

Last year, Zigama CSS introduced the ‘solidarity fund’ to help repay loans left by deceased members and so far most loans have been recovered with the highest loan to ‘recover’ being Rwf18 million.

During the General Assembly, the bank’s top management and shareholders also approved 2018 strategic plan.

Zigama CSS clients are estimated to be 100,000.




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