BK Group Plc has reported its H1 2025 results showing growth in Rwandan francs, though translation into Kenyan shillings reduced the reported pace of expansion.
- •Net profit was RWF 51.9 Bn, up 8.6%, while flat in KSh at 4.7 Bn. EPS rose to RWF 111.6 from 97.8, with return on equity at 22.5%.
- •Profit before tax increased 12.2% in RWF to RWF 72.7 Bn, but only 3.1% in KSh to KES 6.6 Bn.
- •Total operating income rose 4.0% in RWF to RWF 131.6 Bn, supported by 12.2% growth in net interest income to RWF 103.0 Bn on the back of loan expansion and stable margins.
In KSh terms, however, operating income fell 4.8% to KSh 11.9 Bn, with net interest income up only 2.2%.
Non-interest income declined 17.7% in RWF to RWF 28.6 Bn, but dropped 23.5% in KSh. Foreign exchange income provided some support, growing 8.2%.
| Metric | Jun 30, 2025 | Jun 30, 2024 | YoY % (KES) | YoY % (RWF) |
|---|---|---|---|---|
| Net Interest Income | 9.3 Bn | 9.1 Bn | +2.2% | +12.2% |
| Non-Interest Income | 2.6 Bn | 3.4 Bn | -23.5% | -17.7% |
| Operating Income | 11.9 Bn | 12.5 Bn | -4.8% | +4.0% |
| Loan Loss Provisions | 1.2 Bn | 1.8 Bn | -33.3% | -27.2% |
| Operating Expenses | 4.3 Bn | 4.6 Bn | -6.5% | +3.3% |
| Profit Before Tax (PBT) | 6.6 Bn | 6.4 Bn | +3.1% | +12.2% |
| Profit After Tax (PAT) | 4.7 Bn | 4.7 Bn | 0.0% | +8.6% |
| Total Assets | 239.3 Bn | 235.2 Bn | +1.7% | +4.9% |
| Total Equity | 43.7 Bn | 40.9 Bn | +6.8% | +10.1% |
| Customer Deposits | 157.4 Bn | 153.1 Bn | +2.8% | +5.9% |
| Loans & Advances (Net) | 152.2 Bn | 135.6 Bn | +12.2% | +15.7% |
| NPL Ratio | 3.3% | 3.2% | ↑0.1pp | flat |
Operating Efficiency
- •Expenses rose modestly by 3.3% in RWF to RWF 47.9 Bn, with staff costs higher on talent investments while administrative expenses declined. This supported efficiency gains, with cost-to-income improving slightly to 36.4% from 36.6% in H1 2024.
- •In KSh, operating expenses declined by 6.5%, underscoring the translation effect.
Loan impairment charges fell 28.6% in RWF to RWF 11.0 Bn, aided by improved recoveries.
Balance Sheet Growth
- •Assets rose 4.9% in RWF to RWF 2,644.1 Bn, but only 1.7% in KSh to KSh 239.3 Bn. Net loans increased 15.7% in RWF to RWF 1,682.0 Bn, against 12.2% in KSh.
- •Customer deposits grew 5.9% in RWF to RWF 1,738.5 Bn, and 2.8% in KSh. Equity advanced 10.1% in RWF to RWF 482.8 Bn, versus 6.8% in KSh.
- •Core capital ratio stood at 20.4% and total capital at 21.7%, well above regulatory requirements. Liquidity remained sound, with liquid assets-to-total assets at 33.0%. NPL coverage improved to 53.9%, with net coverage at 117.1%, and cost of risk eased to 1.1%.
Business Highlights
- •Bank of Kigali: Customers rose 7.9% YTD to 793,788. Retail and SME deposits stood at RWF 471 Bn and RWF 259 Bn, while corporates contributed RWF 802 Bn. Digital adoption increased to 52% of retail clients, with 2.97M digital transactions processed.
- •BK General Insurance: Gross premiums grew 17.5% to RWF 8.98 Bn. Net profit fell to RWF 1.58 Bn from RWF 2.14 Bn due to higher claims, with the customer base surpassing 26,700.
- •BK Capital: Assets under management nearly doubled to RWF 130 Bn (+95% YoY). Aguka Unit Trust reached RWF 29.86 Bn (+46%). Income rose 7% with continued strength in asset management and advisory.
- •BK TecHouse: Revenue climbed 36% YoY, with digital services contributing 53%. Digital users reached 5.5M, while digital sales revenues surged 116%. The Urubuto system processed RWF 44 Bn in transactions, and SNS registered 3.5M farmers with RWF 78.8 Bn in facilitated orders.
“Strong momentum in H1 2025 across all subsidiaries, driven by disciplined execution and focus on sustainable growth. With Rwanda’s economy expanding 7.8% in Q1, demand for credit, investment and insurance rose, supporting strategy to grow revenues.”
Dr. Uzziel Ndagijimana, Group CEO
Currency Translation Effect
The divergence between RWF and KSh performance reflects the weakening of the Kenyan shilling against the Rwandan franc. While growth in RWF terms was solid across income, assets, loans, and equity, the translation into KSh diluted reported growth rates, masking the Group’s operational strength.
