BK Group has reported a 28.5 percent increase in first quarter net profit to KES2.1 billion, driven by growth in interest income and prudent cost management.
The Nairobi Securities Exchange and Rwanda Stock Exchange-listed bank’s total operating income jumped 28.6 percent to KES6.6 billion in the three months to end of March 2023, reflecting substantial growth across all performance indicators.
“BK Group Plc demonstrated a great performance in Q1 2023, showcasing the resilient rebound of the economy, while also achieving notable advancements in asset quality and profitability,” said Béata Habyarimana, Chief Executive Officer of BK Group Plc.
The lender’s net loans and advances increased by 13.3 percent year-on-year to KES133.6 billion; helping to boost interest income by 8.6 percent to KES3.9 billion.
The Bank of Kigali CEO, Dr Diane Karusisi, noted that asset quality continued to improve with Non-Performing Loans ratio and cost of risk both standing at 2.6 percent at the end of the first quarter.
Dr Karusisi also noted the percentage of COVID-19 related loans on moratorium reduced to 0.3 percent of the gross loans, while cost to income ratio improved to 38.5 percent from 39.9 percent in the first quarter of last year.
The Group’s total assets increased 2.5 percent to KES208 billion, supported by strong liquidity from customer deposits growth.
The Insurance business reported gross written premium (sales) increase of 20 percent to KES297.6 million.
BK TecHouse registered a sales revenue of KES46.3 million in the quarter; representing a 54 percent growth.
BK Capital’s Net Operating Income rose to KES2.7 million in Q1 2023; a 708 percent growth from quarter one 2022; driven by increased trading on the Rwanda Stock Exchange and sustainable growth in the fund management assets under management.