Bank of Kigali (BK Group) Plc has today announced its unaudited financial results for the period ending 31st March, reporting a Net Income of FRw 15.6 billion (US$ 15.3 million); an increase of 40.0% year-on-year; with return on average assets (ROAA) and Return on average equity (ROAE) reaching 3.8% and 21.6% respectively for the period ended March 31st, 2022.
Net interest income rose by 4.3% year-on-year to FRw 33.3 billion supported by higher income from loans and advances, which grew by 8.8% from Q1 2021 to FRw 1.1 trillion. Total interest expenses Increased by 27.2% year-on-year to FRw 11.7 billion in line with the 21.7% growth in Customer deposits to FRw 1.0 trillion and 43.1% growth in deposits from other banks. Overall, the Net Interest margin reduced to 9.4% from 10.9% in 2021. Non-interest income totaled FRw 9.4 billion; an increase of 33.1% year-on-year driven by the growth in macroeconomic activities.
Total operating income of BK Group rose by 9.5% to FRw 42.7 billion, while total operating expenses rose by 49.7% year-on-year to FRw 17.0 billion driven by higher personnel costs and depreciation charges.
BK Group’s Asset Quality & NPL Ratios
Asset quality continues to improve with NPLs ratio and cost of risk at 5.2% and 0.7% compared to 8.0% and 4.7% respectively in Q1 2021. The percentage of COVID-19 related loans on moratorium reduced to 1.3% of the gross loans in Q1 2022 from 1.7% in FY 2021. Cost to income ratio stood at 39.9% in Q1 2022 from 36.3% in 2021. Profit after tax (Net Income) increased by 40.0% year-on-year to FRw 15.6 billion.
Also Read: BK Group posts 33% Growth in Net Income at Kes 4.1 Billion.
As of March 31st, 2022, BK Group Plc is adequately capitalized with Total Capital to Risk-Weighted Assets at 23.6%. The Group’s Total Assets stood at FRw 1.7 trillion; up 22.4% year-on-year, supported by strong liquidity from customer deposits growth. Net Loans/Total Assets ratio stood at 58.1% down from 64.7% in the same period last year.
The dividend payable balance was FRw 34.6 billion; as per the approved pay-out ratio of 50% of FY 2021. Shareholders’ Equity increased to FRw 293.6 billion, up 10.8% year-on-year. Liquid Assets divided by Total Deposits increased to 51.8% in Q1 2022 from 42.0% in Q1 2021. The Group’s key profitability ratios ROAA and ROAE improved to 3.8% and 21.6% in Q1 2022 respectively from 3.3% and 17.0% in Q1 2021.
“BK Group Plc continues to show resilient performance reporting a Profit before tax growth of 44.4% y-o-y. Our Total Assets increased by 22.4% y-o-y while our deposits grew by 21.7% y-o-y. Our teams remain committed to delivering on our customers’ promise and this quarter’s performance gives us great confidence and optimism that we will meet shareholder’s expectations.” – Dr. Diane Karusisi, Chief Executive Officer.
As of March 31st 2022, BK Group served 391,901 Retail customers and 28,108 Corporate clients, expanded the Agency Banking Network with 3,632 agents, the Bank had 68 branches, 96 ATMs, and 2,883 POS terminals that accepted most international cards including VISA & MasterCard. BK Quick now has over 11,841 new registered customers as of March 31st, 2021, and has disbursed over FRw 1.5 billion
