BK Group Plc, the holding company of Bank of Kigali- the first Rwandese lender to cross-list at the Nairobi Securities Exchange(NSE), has recorded a rise in its net income for the first nine months of 2020 to US$ 28.6 Million.
This is equivalent to KSh 3.1 Billion or 27.6 Billion Rwandese Francs.
According to the lender’s consolidated profit or loss and other comprehensive income for the nine months ended 30th September, 2020, Net Interest income rose to US$85.6 Million at the close of September 2020. This is compared to US$ 77.7 Million over a similar period last year, a growth of 16.8%.
During the period under review, BK Group’s Net fees and commissions declined 2.8% to US$ 8.5 Million from US$ 9.2 Million.
Total Operating Income increased by 14.2% to US$ 106.6 Million from US$ 99 Million. The lender’s net loan provision went up 41% to US$29.6 Million from US$ 22.2 Million.
BK Group Plc pre-tax profit increased from US$ 39.7 Million to US$ 42 Million, a growth of 12.2% while the Balance Sheet size increased to US$1,249 Million from US$1,037 Million at the end of the nine months of 2019.
During the period under review, Gross loans to customers increased from US$ 766.4 Million to US$ 922.4 Million while provisions for loan losses was up to US$ 71 Million from the previous US$ 51.2 Million. Client balances and deposits increased by 30.4% year on year to US$ 801.4 Million as at 30th September 2020.
Shareholders’ equity increased by 12.2% to US$ 247.4 Million during the period under review.
Established in 1966, BK Group is a non-operating holding company with Bank of Kigali as its largest subsidiary. Other subsidiaries are BK General Insurance, BK TecHouse and BK Capital Limited.
The Bank of Kigali has the largest market share in Rwanda, at over 30%. The lender has 79 branches, 13 outlets, 9 mobivans, 2193 agents and serves over 348,000 individuals and over 25,000 business entities.
According to BK Group Plc Limited CEO Dr Diane Karusisi, the Group’s growth is due to its market positioning and relationships built over the year. It has made investments in technology with its knowledge of the market, enabling the business to survive the pandemic.
” As the economy recovers, this quarter’s performance gives us confidence that we shall close this year with a solid performance as we continue to deliver best services to our clients,” said Dr Karusisi.
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