BK awarded Best. week. In this issue: and Exemplary Compliant Tax Payer. BK awarded best and exemplary compliant Tax payer...

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1 this week Issue No. 019/13 e - Newsletter December 2 nd 2013 In this issue: awarded Best and Exemplary Compliant Tax Payer awarded best and exemplary compliant Tax payer...page 1 Cimerwa signing...page 3 9M and Q3 reviewed Results...Page 5 named best bank in Rwanda 2013 by Emea Finance...page 8 IT security awareness...page 9 Bank of Kigali s Chief Operating Officer Lawson Naibo receiving Best and Exemplary Compliant Tax Payer for the year 2012 Award from His Excellency President Paul Kagame at RRA Headquaters Kimihurura Bank of Kigali (the Bank ), the largest bank in Rwanda by market share of total assets, loans, deposits and shareholders funds, is privileged to announce that it was awarded Best and Exemplary Compliant Tax Payer for the year Rwanda Revenue Authority honored taxpayers who clear their taxes on time. A number of companies that topped in tax contribution and compliance were awarded at the 12th taxpayers day celebrations held at RRA Headquarters in Kimihurura on Saturday November 2nd Bank of Kigali received the Best and Exemplary Compliant Tax Payer for the year 2012 while MTN Rwanda, I&M Bank, Rwanda Broadcasting Agency, Safintra Roofings and Steel Rwanda were recognized as most tax compliant in the large taxpayer category. The celebration under the theme Promoting Tax Compliance: A Collective Responsibility was attended by members of the Private Sector and Government Officials, with His Excellency President Paul Kagame as the Chief Guest.

2 e-newsletter Bank of Kigali recognizes the important role taxes play in stimulating socio-economic growth in a country. It is imperative that business owners build a strong organization culture towards paying taxes as well as clear internal policies to ensure that all taxes are paid in a timely manner. Paying taxes in an accurate and timely manner helps business owners avoid penalties as well as maintain the reputation of their businesses. We are honored and thrilled to have won the award of Best and Exemplary Tax Payer for the year The Bank has invested in various channels through which both individuals and businesses alike can pay their tax. We have opened accounts for receipt of payments to enable both individuals and businesses alike to easily pay their taxes, said Chief Operations Officer Lawson Naibo. The Bank opened accounts for receipt of payments to Rwanda Revenue Authority and set aside a specific section within the main branch staffed with a dedicated team to facilitate payment of taxes. Bank of Kigali has also partnered with RRA to introduce Tax Online, an easy, convenient and eco-friendly channel through which businesses can make tax payments and improve efficiency for business owners. Rwanda moved up three places to 22nd globally compared to last year s 25th on tax compliance. About 60.2 per cent of the 2013/14 financial year budget is being financed by locally-raised funds. The awards are a statement to everyone that meeting our tax obligations as individuals and institutions is a noble contribution to the country s growth. Taxes are the foundation upon which a strong country can be built both socially and economically. Easy way to pay taxes Pay your taxes online with Bank of Kigali Ltd. Bank of Kigali Ltd together with RRA has launched an easy, convenient and eco-friendly way to pay all your taxes online. To enroll you need: A bank account with Bank of Kigali Ltd. A username (Which is your TIN number) and password given by RRA Enough money into your account Your password Internet connection How it works Go to Go to banking products Click online payments Click on E-Tax payment system Login- put in your RRA TIN number and Password Go to Tax Declaration and direct your mouse to submit declaration, then choose year Click submit Click on the Document number you need to pay Click the E-payment button Select as bank of choice to make payment Click Submit Login- Put in your Password Fill in the Document details Click process payment and select print receipt It s that easy. You have now paid your taxes Join in being eco-friendly by paying your taxes online and avoid late tax payments penalties levied by RRA. Please call 4455 for any assistance. It s a collective responsibility of every Rwandan to put a brick on this foundation and growth journey by being tax compliant.

3 e-newsletter From left to right: Country Director EADB, CEO I&M Bank, Director of Project & Infrastructure Finance PTA Bank, CEO Ecobank Rwanda, CEO KCB Rwanda and CEO Bank of Kigali signing the facility agreement with CIMERWA CIMERWA Signing CIMERWA receives US $ 93.7m through syndicated loan facility A syndicate of local and regional banks has extended a US$ 93.7 Million debt facility to CIMERWA, the leading cement manufacturer in Rwanda. The syndicate led by Bank of Kigali and the Eastern and Southern African Trade and Development Bank (PTA Bank) as Co- Arrangers signed the facility agreement on Wednesday 20th November at Bank of Kigali s head office. The consortium of lenders also includes Kenya Commercial Bank Group as well as its local subsidiary KCB Rwanda, East African Development Bank, I &M Bank (Rwanda) and Ecobank Rwanda. The loan has been earmarked for the expansion of CIMERWA s current production facility from its current capacity of 100,000 tonnes per annum to 600,000 tonnes per annum. The commission of the new plant will take place in early The expansion plans will lower the company s per unit cost allowing it to offer more competitive pricing in the

4 e-newsletter market. Currently, the company uses wet processing technology that will be replaced by dry processing technology which is more energy efficient. Speaking on behalf of the local banks Bank of Kigali Chief Executive Officer Dr. James Gatera emphasized the need for local financial institutions to continue supporting key sectors of the economy whose growth is necessary for the achievement of the country s middle income status by The completion of this project will benefit the local community by creating employment as well as the economy through the promotion of cement exports to East Africa thereby reducing the dependency on cement imports. noted Dr. Gatera. The added capacity is expected to be a game changer in the cement industry in Rwanda as the country currently imports a significant quantity of its cement from neighbouring countries. The ongoing and planned infrastructure projects in the country as well as increased demand both for commercial and residential real estate are both key drivers of cement consumption and as such the new plant will be well positioned to adequately supply the market without the need for substantial imports. The President and Chief Executive Officer of PTA Bank, Mr. Admassu Tadesse, highlighted the strategic importance of the project in the economic development of Rwanda and the region. Rwanda is one of PTA Bank s most active Member States and, in many ways, a leading success story on the continent. As a regional financial institution, PTA Bank is proud to be associated with this landmark syndicated transaction which will expand capacity in the fast growing construction sector, foster wealth creation and contribute to self-sufficiency in a key input in the economic development of Rwanda. The supply of cement is considered to be critical and strategic in supporting infrastructure development. Growth in cement consumption is strongly related to GDP growth. He added that our region requires considerable funding to propel economic growth and the syndication strategy such as that employed in CIMERWA helps in harnessing available local and regional capital. During the signing ceremony

5 e-newsletter 9M and Q3 Reviewed Results Statement of Financial Position as at 30 September 2013 Reviewed by External Auditors Figures in Rwf'000 Code Assets 30 Sept Sept Dec Treasury Operations And Operations with Banks & Other FI 139,150,780 77,053,586 89,798, Cash In Hand 11,099,656 9,291,379 9,595, Balance With The National Bank Of Rwanda 21,900,460 9,948,453 18,404, Balance With Banks And Other Financial Institutions 53,832,505 37,828,803 14,424, Reverse Repurchase Agreement, Loans & other withdrawn accounts 52,318,158 19,984,951 47,373, Inter-Group Operations Operations With Clients 195,340, ,721, ,066, Overdrawn Accounts ( Overdraft ) 8,606,266 8,140,353 9,973, Treasury Loans 38,963,478 33,179,335 38,300, Equipment Loans 50,547,435 37,671,795 45,772, Consumer Loans 36,021,455 30,660,420 33,362, Mortgage Loans 50,694,894 47,205,725 49,009, Other Loans 7,119,938 3,239,327 2,913, Receivables In Transit 96, ,811 2,116, Non Performing Loans 3,290,005 4,332,626 3,617,394 3 Financial Instruments 19,315,863 32,753,185 13,337, Financial Instruments Held To Maturity 19,097,408 32,534,730 13,119, Equity Investments And Subsidiaries Investments 218, , ,455 4 Fixed Assets And Other Assets Fixed Assets 38,878,108 37,117,847 34,590, Intangible Fixed Assets 238, , , Tangible Fixed Assets 21,283,969 21,318,932 21,627, Receivable Accounts 3,058,254 2,330, , Suspense Accounts 14,296,943 13,222,424 11,743,761 Total 392,684, ,646, ,794,214 Reviewed by External Auditors Reviewed by External Auditors Figures in Rwf'000 Code Liabilities 18,655,674 19,687,448 18,418,927 1 Treasury Operations And Operations with Banks & Other FI 18,655,674 19,687,448 18,418, Due To Banks And Other Financial Institutions 6,283,684 4,986,542 6,141, Repurchase agreement,borrowings and other credit accounts 12,371,991 14,700,905 12,277, Inter-Group Operations With Parent, subsidiaries and branches abroad Operations With Clients 243,164, ,003, ,424, Credit Accounts Of Customers 242,122, ,482, ,985, Other Operations With Customers 115, , , Payables In Transit 926, , ,366 4 Other Liabilities 29,040,836 21,341,770 26,898, Payable Accounts 11,955,439 9,876,359 9,561, Suspense Account 17,085,397 11,465,411 17,336,641 5 Provisions For Contingent Liabilities and Equity 33,172,871 6,053,668 5,944, Provisions for Contingent Liabilities 161,723 18, Long-Term Finance 33,011,148 6,034,940 5,944,978 Equity 68,651,157 61,560,049 63,107, Profit/Loss Allocated To Equity 7,048,391 7,456,994 7,354, Reserves And Share Premium 49,496,275 42,984,110 43,188, Share Capital 6,683,000 6,673,370 6,673, Net Profit/Loss (+/-) 5,423,491 4,445,575 5,890,668 Total 392,684, ,646, ,794,214 Code Off Balance Sheet Items 18,655,674 19,687,448 18,418, Acceptances And Letters Of Credit Issued AFRICAN 47,119,853 BANKER 37,276,072 41,209, Acceptances And Letters Of Credit Received AWARDS 9,767, ,273,515 9,358, Guarantees Commitment Given 30,810,007 24,493,250 27,395, Guarantees Commitment Received 247,574, ,647, ,262,532

6 Equity 68,651,157 61,560,049 63,107, Profit/Loss Allocated To Equity 7,048,391 7,456,994 7,354, Reserves And Share Premium 49,496,275 42,984,110 43,188, Share Capital 6,683,000 6,673,370 6,673, Net Profit/Loss (+/-) 5,423,491 4,445,575 5,890,668 Total 392,684, ,646, ,794,214 e-newsletter Code Off Balance Sheet Items 18,655,674 19,687,448 18,418, Acceptances And Letters Of Credit Issued 47,119,853 37,276,072 41,209, Acceptances And Letters Of Credit Received 9,767,202 9,273,515 9,358, Guarantees Commitment Given 30,810,007 24,493,250 27,395, Guarantees Commitment Received 247,574, ,647, ,262, Other Off Balance Sheet Commitments 363, ,982 1,116, Substandard,Doubtful And Loss Off Balance Sheet Commitment 17,202,434 13,569,584 13,584,375 Total 352,837, ,969, ,927,242 James Gatera Managing Director Alphonsine Niyigena Chairperson Audit Committee Date: 29 November 2013 Statement of Comprehensive Income Reviewed by External Auditors Figures in Rwf' Sept Sept Dec 2012 Interest Income 32,096,115 21,557,723 32,069,789 Interest Expense (7,041,796) (5,720,512) (8,338,615) Loan /Loss Provision (6,014,663) (1,139,042) (3,647,289) Net Interest Income 19,039,655 14,698,169 20,083,885 Fees & Commissions received 7,629,507 4,693,147 6,678,935 FX related income 5,875,654 5,400,620 7,031,504 Other Income & Operating Expenses 651, , ,100 Net Income from Banking Activities 33,196,070 25,512,589 34,758,424 Staff Costs (8,622,404) (7,179,627) (9,615,156) Other Operating Expenses (7,234,544) (4,700,096) (6,998,261) Depreciation & Amortisation Charges (3,428,062) (2,113,404) (3,678,098) Operating profit 13,911,060 11,519,463 14,466,909 Corporation Tax (3,064,078) (2,628,312) (2,685,573) Net Income 10,846,982 8,891,151 11,781,336 James Gatera Managing Director Date: 29 November 2013 Alphonsine Niyigena Chairperson Audit Committee RwF in billions Net Profit after Tax

7 Nyamasheke Rusizi Bugarama Gakenke Rubavu 1 Ngororero Rubavu 2 WESTERN Muhanga PROVINCE Karongi Nyamagabe Musanze 2 Musanze 1 SOUTHERN PROVINCE Gicumbi Byangabo NORTHERN PROVINCE Butaro Ruhango Nyanza Huye Huye Market Gatuna KIGALI Nyamata Ruhuha Ngarama Nyagatare EASTERN PROVINCE Rwamagana Rukomo Ngoma Rwimiyaga Kabarore Rusumo Kayonza Kabarondo Nasho Kibungo Kirehe James Gatera Managing Director e-newsletter Date: 29 November 2013 Alphonsine Niyigena Chairperson Audit Committee RwF in billions Net Profit after Tax Sept-10 Sept-11 Sept-12 Sept-13 RwF in billions Financial Position Shareholders equity Net Loans Customer Deposits Total Assets FY11 FY12 Q BURUNDI UGANDA KENYA Nairobi We believe in a Borderless East Africa TANZANIA

8 deposits and shareholders funds, is pleased to announced that it has been named the Best Bank in Rwanda by emeafinance magazine for the fifth consecutive year. The Bank received the award as part of e-newsletter the magazine s African Banking Awards. named Best Bank in Bank of Kigali was selected for its sustained position at the forefront of commercial and retail banking in Rwanda as reflected in its significant market share across major metrics such as total assets, loans and deposits. The Bank has demonstrated consistent growth and innovation in service delivery through key initiatives such Yacu and the MobiBanks. Rwanda 2013 by emeafinance Bank of Kigali (the Bank ), the largest bank in Rwanda by market share of total Bank of Kigali was selected for its sustained position at the forefront of assets, We loans, are honoured deposits and to shareholders receive this award commercial for and the retail fifth banking consecutive in Rwanda year. This award, as well as other funds, is pleased to announced that it has as reflected in its significant market been awards named received the Best this Bank year, in Rwanda is a tribute share to across the hard major work metrics and such commitment as total of our team and the trust by emeafinance magazine for the fifth assets, loans and deposits. The Bank has consecutive our customers year. The have Bank place received in the Bank. demonstrated We will continue consistent to growth deliver and solid results for our shareholders award as part of the magazine s African innovation in service delivery through Banking and take Awards. the lead in banking the unbanked, key initiatives commented such Yacu Chief and Executive the Officer, James Gatera. MobiBanks. Our Awards & Accolades Bank of the Year 2012, 2011, 2010 and 2009 We are honored to receive this award for the fifth consecutive year. This award, as well as other awards received this year, is a tribute to the hard work and commitment of our team and the trust our customers have place in the Bank. We will continue to deliver solid results for our shareholders and take the lead in banking the unbanked, commented Chief Executive Officer, James Gatera. Best East African Bank 2012 Best Bank in Rwanda 2013, 2012, 2011, 2010 and 2009 Euromoney Award for Excellence- Best Bank in Rwanda 2013 Best Financial Reporting Company, Rwanda Best African Listing Company of the Year 2011 Short term credit rating-a1+ Long term rating AA-

9 e-newsletter Social Engineering Today much of our business or social interactions are done through communication by , chats with instant messaging, SMS messages and phone calls. These technologies have made it easier to communicate and work with people from around the world, however they also make it much easier for cyber criminals to launch their most effective attacks against our social engineering by building trust pretending to be a person or an organization that we know, to obtain whatever they want such as access to your computer, your money or an important information. You are the best defense Social engineering attacks are hard to protect against because technology alone cannot solve the problem. You are the best defense! Understanding that you are a target and that a cyber-criminal will use any technics to fool you or trick you. The simplest way to protect you is to use common sense. If an , sms or phone call seems suspicious or sounds too good to be true, it is most likely an attack. Cybercriminals fool or trick people using two kinds of attacks; Human based: Direct interaction with human Computer based: An attacker gets access to a computer. Cyber criminals attacks examples Example1 Bob and John share a bank account at. A bank employee receives an pretending to be form Bob instructing him to do a transfer from their account to an account X. A few minutes later, the same bank employee receives a phone call from John, instructing him to examine and process the transaction. John spoke with authority and fluent English. However, the request was a fake; John who called him was an attacker. In this case; you should try to exhaust the resources by calling their secondary! lines (office) or calling their relatives (spouse, child). Example 2 Examples of Computer based attack: attachments Fake websites Pop-up windows The mostly claims to be from a well-known source, a highly reputed organization, and asks the user to click on a link that takes the users to a site similar to the organizations web site but this site is a fraudulent website that harvests users credentials. The fraudsters use these credentials to gain access to your computer, then to bank applications, or bank accounts and steal important information and money. Do not click on links inside suspicious s. How to avoid being a victim Do not input confidential information into websites without checking the website security. Do not click on links inside suspicious s. Do not click or download suspicious attachments from senders that you have not heard before. When you are on the web, be aware that pop-ups that advertise bargains may request you to install malicious software to claim prices. What can you do if you are a victim? If you think you have entered your user id and password to a fraudulent website change your password as soon as possible. If financial information has been compromised, close down or lock account to prevent harm. Published by IT Department: Lilliane Uwarugira