BK Group has reported a 30.3 percent jump in half-year net profit to KES4.4 billion, driven by strong growth in interest and transaction income.
The Rwanda Stock Exchange and Nairobi Securities Exchange-listed lender reported a 22.5 percent growth in total revenue to KES12.9 billion, reflecting a strong performance of its loan book and non-funded income.
The Group kept its operating costs in check, registering a 15.6 percent growth to KES5.2 billion.
“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, the Group achieved a commendable year-on-year net income growth, paralleled by substantial growth across all key performance indicators, solidifying its position as a robust player in the market,” said BK Group CEO, Béata U. Habyarimana.
She noted that all 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 KES228.5 billion, net loans increased 4.4 percent to KES138.5 billion while Client balances and deposits went up 21.5 percent to KES140.7 billion.
“Total interest expenses decreased by 6.0 percent to KES2.9 billion due to a decreasing cost of funds, resulting from fruitful efforts to mobilize cheaper deposits,” said the Bank of Kigali CEO, Dr Diane Karusisi. “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,” she added.
Bank of Kigali’s QUICK NOW has registered 85,534 customers and disbursed over KES445.7 million as of 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 KES204.8 million in the period, an increase of KES12 million, supported by a 30 percent year-on-year growth in gross premiums.
BK TecHouse reported a 29 percent revenue increase to KES88.9 million, while BK Capital’s net operating income rose 96 percent to KES90.6 million.