Our Shareholders

Outlook

In 2011, the growth momentum that started during the second half of 2010 continued.  As of May 31^st, 2011, loans had grown 44% and deposits had increased 24% from YE 2010.  Also, as of May 31^st, 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.

UOB 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 Rwandan poor mitigate their life risks better.  UOB will continue to be involved in developing other micro insurance products.  UOB 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, UOB 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 UOB remain alert and strive to respond with creative solutions.

UOB’s strategies to counter these challenges are threefold: 1) UOB is in the process of implementing e-Wallet strategies over 2011 and 2012.  When these strategies are fully implemented, UOB’s efforts to reach out to Rwandans in rural areas will bear much fruit.  2) UOB is introducing foreign currency accounts, foreign exchange services, and remittance services.  These will help UOB diversify its revenue sources as well as expand its product and service lines.  3) UOB 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!