3 December 2018

Rwanda: BK Group Edges Closer to 2018 Target

BK Group is edging closer to its projected 2018 net income after reporting a net income of Rwf19.7 billion in the first three quarters of this year.

BK Group is projecting a net profit of between Rwf26 billion and Rwf28 billion this year.

The group, which has subsidiaries in banking, technology and insurance, registered growth in most of its operations with biggest returns in the banking arm.

The lender's loan book grew by 10.6 per cent in comparison to the same period last year to Rwf500.7 billion (US$ 571.2 million) as at September 30, 2018.

So far, Rwanda Revenue Authority can estimate to rake in about Rwf11.4 billion from the group's earnings.

Desire Rumanyika, the Chief Operating Officer of BK Group Plc, said that the performance of the BK Group Plc for quarter three of 2018 is in line with their annual projections.

He also noted that the management of BK Group Plc is pleased with the results of the rights issue with the subscription of above 100 per cent, as this shows strong endorsement of BK Group's growth strategy from the existing shareholders and new investors.

BK Group Plc on Friday cross-listed at the Nairobi Securities Exchange (NSE), a move expected to increase the group's liquidity and enable it to raise adequate capital.

"We shall maintain focus on the loan book growth, expand retail and SMEs deposits, and promote digital banking drive and grow our subsidiaries," he said.

The long-awaited cross-listing marks the entrance of the first Rwandan company to the Kenyan capital market, the biggest in the region.

The cross-listing also means that buyers and sellers will now be able to place their orders on either side as the total float of shares are available to both markets - on NSE and Rwanda Stock Exchange.

The lender's trading on the Nairobi bourse debuted at 9:30 a.m Kenyan time (10:30 a.m Rwandan time) on Friday. Bank of Kigali initial bids for the share was placed at Ksh31.1 per share as at 9:30 am.

Expectations are high as BK became the first Rwandan company to cross-list on the NSE.

The cross-listing comes few days after BK Group had floated 222.22 million new shares through a rights issue in which current shareholders were eligible to buy one new share for every three they own.

According to BK Group, the total register of over 500 million shares, are available to be traded on both Exchanges, with 76.07 million allocated to new investors on the Nairobi bourse.

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