Bank of Kigali posts KSh4bn profits in Q3

Bank of Kigali Group Plc has recorded a 33 percent jump in profit to KSh4 billion in the nine months ended September, underlining the Rwandan economy’s strong rebound from the Covid-19 pandemic shocks.

BK Group, whose shares are listed on both the Rwanda Stock Exchange (RSE) and the Nairobi Securities Exchange (NSE), recorded a 20.1 percent growth in interest income to KSh14.4 billion in the period on the back of a 21.4 percent year-on-year growth in the loan book to KSh8.9 billion.

The Group’s total assets increased 28.5 percent year-on-year to KSh13.4 billion.

“We recorded double-digit growth on all key performance metrics and kept a prudent stance with regards to impairments. The economy is projected to rebound in the current year with positive outlook through to 2022, supported by high infrastructure project spending and a pickup in the manufacturing and service sectors as the effects of the Covid-19 pandemic dissipate. We’re happy to see improvement in asset quality, which allows us to look forward to close the year with a solid performance.” said the BK Group Chief Executive Officer, Dr. Diane Karusisi.

The Group’s asset quality recorded significant improvement with the Non-Performing Loans (NPLs) ratio and cost of risk at 6.2% and 3.7% from 6.7% and 4.0% respectively, compared to the previous year. The percentage of Covid-19 related loans on moratorium reduced to 2.6% of the gross loans from 47% restructured facilities previously.

Total dividend payable balance stood at KSh3.5 billion, which includes KSh1.5 billion payable dividend for 2019 and a 50 percent payout ratio for the current year’s profit.

BK Group served over 361,585 Retail customers and over 27,117 Corporate clients in the nine months; through an expanded agency banking network of 3,044 agents 68 branches, 13 outlets, 9 mobivans; 96 ATMs and 2,553 point of sale terminals that accept most international cards including VISA & MasterCard.

The BK Group’s insurance business registered a Profit of KSh200.2 million in the third quarter, representing a 17 percent growth in profitability over a similar period last year.

The BK TecHouse reported 54 percent growth in operating income to KSh88.3 million, while BK Capital Ltd’s total revenue stood at KSh14.9 million.

“The Financial sector is expected to remain sound and stable. BK’s focus remains on non-funded income, deposit mobilization and asset quality improvement. Our core banking system has gone Live, we are excited about crossing this big milestone of our digital transformation journey,” said Dr Karusisi.