Bank of Kigali profit up to Sh2.5 billion on interest income
Bank of Kigali (BK Group) net profit for six months to June rose 41.5 percent on the back of increased interest and non-interest income.
The bank, which is listed on both the Nairobi (NSE) and Rwanda stock markets reported Sh2.5 billion net profit in the review period up from Sh1.8 billion posted in the preceding similar period.
The profit growth signals a recovery for the publicly-traded Rwandan lender and mirrors the trend that has been seen by lenders in Kenya as the economy picks up from Covid-19 disruptions.
The growth was mainly driven by a 29.9 percent growth in net interest income to Sh7.3 billion supported by growth in net loans and advances to customers from Sh89.8 billion to Sh100.1 billion.
Non-interest income grew by 43.9 percent to Sh1 billion to support growth in the bottom-line despite a 46.1 percent rise in operating expenses to Sh1.7 billion
Bank of Kigali hopes to keep up with the growth momentum in the second half of the year, partly helped by loosening of Covid-19 control measures.
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“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 Diane Karusisi, the chief executive at BK Group.
“The recent mass vaccination campaign in Kigali gives hope that full recovery can be expected towards the end of the year.”
BK Group last year posted a 4.1 percent drop in net profit from Sh4.51 billion to Sh4.32 billion on the back of increased coronavirus-linked loan loss provisions.
Rwanda has so far administered more than 1.51 million doses of Covid-19 vaccines, equivalent to about 8.4 percent of the population and among the highest vaccination coverage ratio in Africa.
The lender, with an asset base of Sh153.6 billion, is Rwanda’s largest commercial bank by assets with 68 branches spread across the country’s main towns and cities.
BK Group has also been operating a representative office in Kenya since February 2013.
Other lenders with representative offices in Kenya are Bank of China, FirstRand Bank, HDFC Bank, Mauritius Commercial Bank, Nedbank Limited, Co-operatieve Rabobank U.A and Société Générale.
