Nairobi Securities Exchange listed lender BK Group has reported a 30.3 percent jump in half year net profit to Sh4.4 billion, driven by a strong growth in interest and transactions income.
The lender reported a 22.5 percent growth in total revenue to Sh12.9 billion, reflecting a strong performance of its loans book and non-funded income.
The Rwanda Stock Exchange and NSE listed Group kept its operating costs in check, registering a 15.6 percent growth to Sh5.2 billion.
BK Group CEO, Béata Habyarimana said the Group achieved a commendable year-on-year net income growth, paralleled by substantial growth across all key performance indicators.
“BK Group Plc exhibited an impressive performance in the first half of 2023 that not only underscored the economy’s resilient rebound but also highlighted significant strides in enhancing asset quality and bolstering profitability. Notably,” said Habyarimana.
The Group’s businesses, including the banking, insurance and investment units all reported strong growth in the period.
BK Group’s flagship business, Bank of Kigali, maintained a strong performance, outperforming its Rwandan peers in the first six months of the year based on key industry parameters such as growth in total assets, net loans, client deposits and shareholders’ equity.
Total assets grew by 16.1 percent year-on-year to Sh228.5 billion, net loans increased 4.4 percent to Sh138.5 billion while Client balances and deposits went up 21.5 percent to Sh140.7 billion.
“Total interest expenses decreased by 6.0 percent to Sh2.9 billion due to a decreasing cost of funds, resulting from fruitful efforts to mobilize cheaper deposits. Asset quality is generally improving with the Non-Performing Loans ratio and Cost of Risk maintained at 2.3 percent and 2.0 percent respectively in the first half,” said the Bank of Kigali CEO, Diane Karusisi.
Bank of Kigali’s Quick Now has registered 85,534 customers and disbursed over Sh445.7 million as at June 30th, while the IKOFI wallet has registered over 1,853 agro-dealers/agents and on-boarded over 264,184 farmers.
BK General Insurance recorded a profit of Sh204.8 million in the period, an increase of Sh12 million, supported by a 30 percent year-on-year growth in gross premiums.
BK TecHouse reported 29 percent revenue increase to Sh88.9 million, while BK Capital’s net operating income rose 96 percent to Sh90.6 million.
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