Equity Bank Rwanda received the Bank of the Year Award 2021 from The Banker. This is the second consecutive award.
The Bank of the Year Awards honors the best in global banking and is considered the industry standard for banking excellence.
The 2021 edition focuses on institutions that have outperformed their peers in terms performance, strategic initiatives, response to the COVID-19 epidemic.
Equity Bank Rwanda was recognized for its solid commitment to the country’s small and medium-sized enterprise (SME) community during a challenging year for the country’s economy.
Equity Bank Rwanda’s Tier 1 capital increased by 27%, from Rwf 36.2 billion in 2019 to Rs. 46 billion in 2020. Assets grew by 25%, from Rwf 276.1 billion in 2019 and Rwf 345.3billion in 2020. Net profits increased by 20% to Rwf 11.1billion, compared to Rwf 9.2billion in the previous financial year. To demonstrate a healthy portfolio, Equity’s non-performing loan ratio reduced to 3.58% compared to 3.99% in 2019.
According to The Banker’s 2021 edition, the awards are designed to recognize institutions who have risen to the occasion and made it through the worst COVID-19 pandemic more resilient and stronger.
Banks have reacted quickly and changed their working methods and how they provide services to customers. Importantly, institutions have rethought the purpose of their role in society and are now able to support their customers’ financial and business interests when they are most needed.
While acknowledging the win, Equity Bank Rwanda Managing Director, Hannington Namara said, “We are greatly honoured and humbled to receive this recognition of Bank of the Year Rwanda 2021 award by The Banker. The bank’s continued relevance even in difficult times is evident by the award.
A testament of operating true to our commitment to provide inclusive financial services that transform livelihoods, give dignity, and expand opportunities for wealth creation.”
The bank’s performance was mainly driven primarily by strategic initiatives that had a positive effect on the society during the year of the pandemic. The Bank formed partnerships with Enterprise Partner Solutions and Mastercard Foundation to create a COVID-19 Resilience and Recovery program that committed US$2.5 million to support small and mid-sized enterprises (SMEs) in the most affected sectors of tourism and hospitality.
This aligns with the business’s focus on being at forefront in building a better and more powerful economy. The program has already supported 120 SMEs in these two sectors, both financially and technically, at all stages of their maturity.
The Bank supported SME customers that were affected by COVID-19 with loan restructures. A $10M guarantee agreement was signed with African Guarantee Fund to protect 50% of all SMEs exposeds. This was done to help SMEs businesses recover with resilience.
Plans are also in place for partnerships with all UN organizations in Rwanda as well as other partners who are interested in working with the Bank to help customers recover. These partnerships include support for young people through the Young Africa Works program in deal Mastercard.
To ensure seamless digital operations, and to boost its trade finance offering and in compliance with the Government’s law N° 63/2007Equity was able to automate the tendering process using an off-the shelf solution. This was to stop manual tendering. This platform has seen a rise in compliance, and more SMEs are using it. The Bank has also created a variety of trade finance products that target SME customers as well as retail markets.
The Bank continues its leadership in digital transformation by innovation. Equity Rwanda upgraded its Eazzy Suite, which include EazzyBanking App, Equity USSD *555#, EazzyNet, EazzyBiz, EazzyLoan and EazzyAPI that have delivered an unmatched increase in use over time.
92% of all transactions occurred outside brick and mortar by 2020. Utilizing technology, local offerings can be made available to global settings through Diaspora Banking department. This is for individuals who live and work abroad.
Through EazzyNet Online and EazzyBanking App, Fintech integration with International Money Transfer Operators, (IMTOs), which include Ria, Transfast and Terra, Hello Paisa and Wave, Small world. These include Western Union, Home Send and Thunes, Ping express and PayPal.
These factors enabled Diaspora’s remittances in 2020 to rise by 378% from Rwf 13Billion (Rwf 56Billion) while commissions increased by 330% from Rs 162Million to Rs 697Million over the same period.
The Bank believes that these trends will continue to disrupt technology, thus the need to increase investments in specialist human resources and technological resources to ensure cutting-edge products.
The Bank of the Year Awards 2021 by the Banker, a monthly international financial affairs publication owned by The Financial Times Ltd, is a continental awarding showpiece that recognizes and acknowledges excellence in the banking sector drawn from the world’s leading financial institutions.
They are judged on how they deliver returns, achieve strategic advantage and serve their market. In 2020, Equity Bank’s South Sudan, DRC and Rwanda subsidiaries emerged winners in the Bank of the year category.
Source: rnewtimes
