29 March 2019

Rwanda: Bank of Kigali Net Profit Up 17%

Photo: Emmanuel Kwizera/New Times
Bank of Kigali.

Bank of Kigali Group has announced a net profit rise of 17.2 percent to Rwf27.4 billion ($30.7 million) for the full year ended December 2018, buoyed by higher interest incomes.

BK Group's net interest income rose 14.2 percent to Rwf75.8 billion ($84.9 million).

The lender is Rwanda's largest bank by assets and has 79 branches and 1,427 agents.

Its total assets increased by 20.7 percent to $983.6 million with customer deposits growing by 16.9 percent to $596.4 million.

"We saw a significant increase in gross loans of 13.9 percent in quarter four alone. We achieved this growth following a successful capital raise that will enable us to grow further and invest in the future," Diane Karusisi, the chief executive officer told a press conference on Thursday.

Net loans and advances grew by 20.4 percent to $636.9 million.

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The bank, which listed on the Rwanda Stock Exchange, cross-listed on the Nairobi Securities Exchange in November last year.

"The benefits from listing on the NSE are that we have new shareholders coming from Nairobi because they have a much bigger base than the Rwandan Stock Exchange," said Nathalie Mpaka, the chief financial officer.

Ms Mpaka added that the lender has no plans of expanding into the regional market yet.

"At the moment there is still a lot to be done in the country. We are going to concentrate on the local market for now," she said.

BK Group has an insurance agency, and an investment bank, BK Capital, launched in March this year.

"All our subsidiaries reported strong performance leading to over $31 million in quarter four alone. We are focused on delivering higher value for our shareholders and plan to report even better numbers this year 2019," Mr Marc Holtzman, the Board chairman said.

The Board has proposed a dividend payout of 40 percent or $12.3 million, which will see shareholders get Rwf12.2 (US$ 0.014) per share.

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