Bank of Kigali (BK), Rwanda’s leading financial institution on Friday released their financial results for the fiscal year ending December 31, 2024. The bank demonstrated strong growth and resilience, driven by strategic initiatives and a focus on customer-centric solutions.
Bank of Kigali FY2024 Key Financial Highlights (in Rwandan Francs, FRw)
- Revenue (Operating Income): Increased by 15.3% year-on-year (YoY) to FRw 258.7 billion, driven by strong growth in net interest income and non-interest income streams.
- Profit After Tax (PAT): Rose by 21.7% YoY to FRw 91 billion, reflecting improved profitability and effective cost management.
- Earnings Per Share (EPS): Grew by 21.4% to FRw 97.8, aligning with the increase in net income and signaling strong returns for shareholders.
- Total Assets: Expanded by 19.2% YoY to FRw 2.52 trillion, underpinned by growth in loans and liquidity from customer deposits.
- Net Loans and Advances: Increased by 16.8% to FRw 1.45 trillion, indicating sustained demand for credit across retail, SME, and corporate segments.
- Customer Deposits: Grew by 19.5% to FRw 1.64 trillion, showcasing the bank’s ability to attract and retain depositors.
- Shareholders’ Equity: Rose by 19.7% to FRw 438.5 billion, reflecting a solid capital base to support future growth.
- Operating Expenses: Increased modestly by 2.6% YoY, suggesting improved cost efficiency relative to revenue growth.
Bank of Kigali’s operational efficiency and asset quality also improved in FY2024. The cost-to-income ratio stood at 38.1%, reflecting a lean cost structure despite investments in digital infrastructure. Operating expenses grew by just 2.6% YoY, a much slower pace than revenue, underscoring effective cost management.
Also Read: Bank of Kigali (BK Group) Records a 33% Increase in Net Income to Kes 4.1 Billion
The non-performing loans (NPL) ratio improved to 3.2% by year-end, down from 4.8% earlier in 2024, indicating better risk management and a healthier loan book. Return on average equity (ROAE) climbed to 22.6%, up 80 basis points from the previous year, while return on average assets (ROAA) edged up to 3.9%, showcasing efficient use of resources.
Strategically, BK Group’s performance was driven by its focus on expanding its loan portfolio, mobilizing deposits, and advancing digital transformation. The growth in loans and deposits reflects the success of initiatives like the “Nanjye ni BK” campaign, which boosted both retail and corporate client bases.
Digital channels played a key role in increasing non-funded income, with higher transaction volumes and fees contributing to the bank’s revenue. These efforts position Bank of Kigali well for 2025, with a strong foundation to continue supporting Rwanda’s economic progress through inclusive and innovative banking solutions.
