BK Group Plc (NSE: BKG) has announced its unaudited financial results for the first quarter ended March 31, 2026, delivering a net income of RWF 26.9 billion (US$ 18.4 million). This performance marks a 6.9% year-on-year increase.
The Group’s total operating income rose 13.8% to RWF 72.3 billion. This growth was fueled by net interest income, which increased by 15.2% to RWF 57.8 billion. Notably, the Group successfully reduced its interest expenses by 13.3% through active liability management, which brought the cost of funds down to 2.4% from 3.1% in the same period last year.
Net non-interest income grew by 8.8% to RWF 14.5 billion, driven by a 26.7% surge in net fee and commission income. However, total recurring operating costs also rose by 22.6% to RWF 26.4 billion, largely due to a 54.2% spike in administration and general expenses as the Group invests in its operating platform. Consequently, the cost-to-income ratio stood at 36.6%, compared to 33.9% in Q1 2025.
BK Group Asset Quality and Balance Sheet Strength
The Group’s balance sheet remains robust, with total assets increasing by 13.1% year-on-year to RWF 2,947.3 billion. Key balance sheet highlights include:
- Net loans and advances reached RWF 1,661.5 billion, a 7.3% year-on-year increase.
- Customer deposits grew by 11.7% to RWF 1,876.8 billion.
- Liquidity buffers were strengthened, with cash balances with banks doubling to RWF 689.9 billion.
Management is closely monitoring a shift in asset quality, as the non-performing loan (NPL) ratio rose to 4.8%, up from 3.6% in the prior year. The annualized cost of risk was 1.56%, while the Group maintained a strong capital position with a total qualifying capital ratio of 23.4%, well above regulatory requirements.
Subsidiary Performance Highlights
- Bank of Kigali: Served nearly 800,000 customers, with digital adoption reaching 62.9% for retail clients. Digital transaction values for the quarter totaled RWF 3.97 trillion.
- BK General Insurance: Reported a 58% increase in net profit to RWF 1.15 billion, aided by an improved claims ratio of 41%.
- BK Capital: Assets under management saw a 66% year-on-year jump to RWF 153.1 billion, driven by new client acquisitions.
- BK TecHouse: Recorded a loss before tax of RWF 206 million as flat sales and higher USSD charges compressed margins.
Group CEO Dr. Uzziel Ndagijimana remarked that the Group entered 2026 with strong momentum, emphasizing that their priority remains disciplined growth and prudent risk management while steadily expanding Rwanda’s financial system.
“BK Group entered 2026 with continued momentum across the franchise. Consolidated operating income grew 13.8% year-on year and net income reached RWF 26.9 billion, even as we absorbed higher operating and tax costs and navigated a more demanding credit environment. Our capital position strengthened further, giving us the headroom to keep investing across our banking, insurance, investment, and technology businesses.
As an integrated financial services group, our priority remains disciplined growth, prudent risk management, and the steady expansion of Rwanda’s financial system — supported by the breadth of our subsidiaries and the strength of our balance sheet.” Group CEO Dr. Uzziel Ndagijimana
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