Bank of Kigali will pay out Rwf8.2 billion ($10.3 million) in dividends to shareholders despite posting marginal growth in earnings for the full-year ended December 31, 2016.

The proposed dividend translates to Rwf12.3 ($0.02) per share compared with Rwf12.15 per ($ 0.02) per share in 2015 when the dollar was trading at Rwf725. per franc. The bank’s after-tax profits increased marginally to Rwf20.8 billion ($25.2 million) last year compared with Rwf20.5 billion ($24.8 million) in 2015 but the bank insists these are good results.

Net interest income grew to $67.4 million representing a 20.5 per cent rise from $63.8 million a year earlier in 2015. The bank’s assets in 2016 rose to Rwf638.3billion ($773 million) up from Rwf561.2 billion ($679.6 million) in 2015. Net loans grew to Rwf385.8 billion ($467 million) up from Rwf313.9 billion ($380 million) in the same year.

“Overall our results have been good. The bank posted double digit growth in profits, when you look at our loans book, we have more than 20 per cent growth. Our profit before tax was Rwf30 billion ($36.3 million),” said Daine Karusisi chief executive officer of Bank of Kigali Group.

The bank plans to use 60 per cent of the profits to support its expansion plan and finance new businesses as it tries to diversify risk. However the banks’ income taxes expenses grew to Rwf9.2 billion ($11.4 million) up from Rwf5.3 billion ($7.2 million) — a 75.6 per cent increase — reducing investors’ earnings.

Bank of Kigali has been enjoying a tax incentive of 20 per cent off corporate tax for the past five years since listing on the stock exchange in 2011. However, the bank is now paying the full 30 per cent rate on corporate tax.

Going forward the bank plans to leverage on technology-driven products such as mobile banking and agency banking to mobilise customer deposits.

The bank also plans to grow its loan book by targeting both new retail and corporate clients, a development that should help the lender maintain its market lead.

The greatest challenge the banking industry faces is increasing competition from regional players that are setting up subsidiaries in Rwanda. They include KCB Bank Rwanda, Equity Bank Rwanda and Ecobank.