Atlas Mara’s Maurice Toroitich on the major drivers behind strong Q1 results

Efficiency, strategy, and resilience have been key drivers of success for BPR Atlas Mara Rwanda, as revealed by Maurice Toroitich, the Managing Director, in a recent CNBC Africa interview discussing the bank's solid first-quarter results amidst challenges in the banking sector and uncertainties posed by the COVID-19 pandemic. The bank's Q1 financial performance demonstrated a remarkable 46% growth compared to the same period last year, showcasing the effectiveness of the bank's strategic initiatives to improve operational efficiency and financial stability. Toroitich attributed this strong performance to ongoing efforts to enhance revenue streams, tighten cost controls, and maintain optimal asset quality levels. According to Toroitich, the bank's revenue lines, asset quality, and cost management remained well within their target levels, leading to a robust Q1 performance that aligned with the bank's expectations. The focus on improving underlying business performance across all segments has been a key factor in driving the positive results, reflecting a shift towards a more efficient and effective operational approach. One of the significant challenges addressed by BPR Atlas Mara Rwanda in recent years was the identification and elimination of 'dead weight' within the organization, particularly in terms of non-performing assets and inefficient branch network utilization. Toroitich highlighted the transformation of the bank's branch network from service outlets to revenue drivers, emphasizing the cultural shift towards a business-centric mindset to boost performance. By instilling a stronger sense of revenue generation and cost management across its extensive branch network, the bank witnessed tangible improvements in operational efficiency and financial outcomes. Moreover, the bank's commitment to enhancing service quality standards, technological innovation, and staff productivity has further reinforced its competitive position in the market, positioning BPR Atlas Mara Rwanda as a key player in the local banking sector. Despite the impressive results in Q1, Toroitich acknowledged the potential challenges posed by the COVID-19 pandemic on the bank's performance in the upcoming quarters. The anticipated impact of the pandemic on revenue streams, particularly related to fees and commissions on transactions, is likely to result in a decline due to extended lockdown periods and delays in economic activity normalization. Additionally, the bank expects a rise in non-performing loans as customers face cash flow difficulties, prompting proactive measures to support clients during this challenging period. While the outlook for Q2 remains cautious given the prevailing uncertainties, BPR Atlas Mara Rwanda is committed to navigating through the challenges effectively and ensuring the resilience of its operations. The bank's focus on customer support, risk management, and strategic adaptation to the evolving business landscape will be crucial in mitigating the potential impacts of the ongoing crisis and sustaining its long-term growth trajectory. As BPR Atlas Mara Rwanda continues to prioritize operational efficiency, innovation, and customer-centric strategies, the bank's ability to weather the current challenges and emerge stronger from the crisis will be a testament to its resilience and adaptability in a rapidly changing financial environment.