Financial Reports 2016

Statement of Financial Position | Statement of Profit or Loss

Share Holders

During the first half of 2010, Urwego experienced a setback in its performance, primarily because of a system crash that compromised the bank’s data integrity.  The result was a slow process and subsequent plunge in the loan portfolio and client number.


However, during the second half of 2010, Urwego bounced back with a strong performance after the system crash issues were fixed.  This bounce-back enabled the bank to finish its loan and deposit balances at higher levels than YE 2009.  It was truly God’s grace that made this happen.  As of September 30, 2010, we received a clean bill of health on our IT system after an IT audit was conducted.  Moreover, throughout the process, we were able to make our loan processing faster and more streamlined, implement PAR MMS (Portfolio at risk migration monitoring system) to bring the PAR under control, and strengthen the bank’s team work significantly.  It was a blessing in disguise.  We praise the Lord!


Key figures as of September 30, 2014 were as follows:


Loan Portfolio: $13,567,006       Loan Client Number: 52,974


Deposit Balance: $13,687,564        Deposit Client Number: 266,787

In 2011, the growth momentum that started during the second half of 2010 continued.  As of May 31st, 2011, loans had grown 44% and deposits had increased 24% from YE 2010.  Also, as of May 31st, we surpassed the 100,000 mark in savings client numbers!  Moreover, we reported a small operating profit in May while we reported a cumulative net profit for the first five months of 2011.  It would not have been made possible without God’s grace and everyone’s dedicated hard work.


Urwego remains a pioneer in many areas.  It launched the first micro insurance product in Rwanda in June.  The first product was Enhance Credit Life that will help many of the Rwandan poor mitigate their life risks better.  Urwego will continue to be involved in developing other micro insurance products.  Urwego also disbursed its first agricultural loans in an effort to provide input financing for 47 Irish potato farmers.  This program will be further expanded.


For the rest of 2011, Urwego is expected to continue its growth; however, several competition-related challenges are on the horizon.  National Bank of Rwanda has licensed three additional microfinance banks: one green field from Kenya and two conversions from MFIs.  Naturally, they will bring competitive pressure to us.  Particularly the new bank from Kenya is expected to present a significant challenge.  Additionally, the largest bank in Rwanda is making a big stride in reaching out to under-served Rwandans.  This is through a very aggressive savings and loan program that appears to be in conjunction with its plan to go public through an initial public offering in 2011.  All these challenges will make Urwego remain alert and strive to respond with creative solutions.


Urwego’s strategies to counter these challenges are threefold: 1) Urwego is in the process of implementing e-Wallet strategies over 2011 and 2012.  When these strategies are fully implemented, Urwego’s efforts to reach out to Rwandans in rural areas will bear much fruit.  2) Urwego is introducing foreign currency accounts, foreign exchange services, and remittance services.  These will help Urwego diversify its revenue sources as well as expand its product and service lines.  3) Urwego is developing a comprehensive education financing program that will help provide tuition fee loans, higher education student loans, and private school loans.  These products will surely assist Rwanda in developing its knowledge-based economy through investments in education.


May God continue to bless us so that we can be a blessing to Rwandans!

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