Bank of Kigali quarter three Profit up 18.4% to KES5 billion

The Bank of Kigali (BK) Group has announced an 18.4 percent increase in net profit to KES5 billion for the period ended September 30 2022.

The strong profit growth for the Nairobi Securities Exchange and Rwanda Stock Exchange listed lender was driven by an increase in interest earnings, transactions income and a significant drop in loan loss provisions.

Total interest income grew 9.9 percent to KES16.5 billion, helped by a 4.4% expansion in net loans and advances to KES119.6 billion.

“We are happy to see improvement in asset quality despite a turbulent macroeconomic environment. We remain Rwanda’s leading financial group with over 30 percent market share on all key metrics. The teams remain committed to delivering great results and we are confident and optimistic that we will continue to meet shareholder’s expectations,” said the BK Group Plc Chief Executive Officer, Béata Habyarimana.

BK’s loan loss provisions decreased 56.1 percent to KES1.4 billion, while Non Performing Loans ratio decreased to 4.6 percent from 6.2 percent, indicating an improvement in asset quality.

The percentage of COVID-19 related loans on moratorium reduced to 2.74 percent of the gross loans from 47 percent restructured facilities.

Non-interest income increased 13.0 percent to KES3.5 billion.

“The rise in transactions income was driven mostly by growth in foreign exchange related earnings and increased economic activities as we continue to see macroeconomic recovery,” said The Bank of Kigali CEO, Dr. Diane Karusisi.

The Group’s total assets stood at KES203.4 billion; up 13.4 percent over the previous period. Shareholders’ Equity increased by 11.2 percent to KES35.8 billion.

Bank of Kigali has 68 branches, 13 outlets, 9 mobivans; 97 ATMs and 3,197 point of sale terminals that accepts most international cards including VISA & MasterCard.

The agency Banking Network increased to 4,086 agents and processed over 1.8 million transactions during the nine months.