Bank of Kigali cuts Covid-19 loans to 4.1%, net profit up 41.5% to $22.9 million in half-year to June 2021

The Bank of Kigali PLC has cut the percentage of Covid-19 related loans on moratorium to 4.1 percent of its gross loans from 47 percent as at the end of the first half of the year, signaling a strong recovery for the publicly traded Rwandan lender.

The bank, whose shares are listed on both the Nairobi and Rwanda stock markets, reported a 41.5 percent increase in net profit to $22.9 million (FRw22.8billion) in the six months to end of June 2021.

The performance was mainly driven by a 28.2 percent growth in interest income to $86.3 million (FRw85.9 billion) supported by an equally robust growth in net loans and advances to customers, which increased 15.9 percent to $920.5 million.

“The recent mass vaccination campaign in Kigali gives hope that full recovery can be expected towards the end of the year,” said Dr Diane Karusisi, the Chief Executive Officer.

Rwanda has so far administered more than 1.51 million doses of Covid-19 vaccines, equivalent to about 8.4 percent of the population.

The vaccination coverage ratio is among the highest in Africa, placing Rwanda’s economy in a good position to post strong recovery from the global pandemic.

The Kigali-headquartered BK Group is Rwanda’s largest commercial bank by assets with 68 branches spread across the country’s main towns and cities.

The bank has been operating a representative office in the Kenyan capital, Nairobi, since 2013.

The bank has expanded its Agency Banking Network to 2,692 agents as at June 30^th in a bid to reach more customers across the country.

BK’s total assets increased by 20.4 percent in the period to $1.41 billion (FRw1.4 trillion), primarily driven by loans growth. 

“I am confident that our performance will continue to improve making BK Group Plc more attractive to investors who are looking for strong and stable returns,” said Dr Karusisi.