BK Group Plc held its Annual General Meeting (AGM) on Wednesday, May 22, where it reviewed the annual report and audited financial statements for the year ending December 31, 2023.
The meeting, enriched with insights from the chairman, directors, and auditors, saw the declaration of a dividend of RWF24.18 per ordinary share, payable on or about July 2 to shareholders registered by June 14. A total of RWF23.6 billion in dividends is set to be distributed.
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The board of directors, comprising Jean Philippe Prosper, Sonia Masimbi Kubwimana, Mutesi Linda Rusagara, Darren Smith, Roselyne Uwamahoro, Achumile Majija, and Francis Gatare Kabera, were unanimously re-elected.
A resolution for a dividend reinvestment plan offering a 5% discount on the market price for commitments made three days prior to the meeting was also approved by shareholders.
BK Group Plc recorded a 25% increase in net profit, amounting to RWF74.8 billion in 2023, attributed to gains in both interest and non-interest income.
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"In recent years, we have focused on becoming a customer-centric organization, prioritizing innovation and digitalization," said Jean Philippe Prosper, Chairperson of the Board. "We aim to shift our perception from being merely a corporate bank to becoming the bank for all Rwandans."
Apart from the Bank of Kigali Plc, BK Group's portfolio includes subsidiaries such as BK General Insurance, BK TecHouse, BK Foundation and BK Capital. The banking arm has been pivotal in driving the group’s growth.
"The commercial bank is currently the largest in the country, commanding a 33% market share. It has consistently delivered profitable returns, ranging in the mid to high twenties percentage-wise, depending on the year," Prosper elaborated.
The financial statements highlight a growth in deposits to RWF1.38 trillion from RWF1.08 trillion during the review period, with total assets expanding by 14.3% to RWF2 trillion. This growth was primarily driven by an increase in customer deposits and other placements.
"The insurance company is ranked third by market share in the country, yet it remains the most profitable general insurance company, leading in both size and profit among general insurers for four consecutive years," Prosper added.
"BK Capital is the top internal financial advisory and brokerage company, and ranks second in fund management. BK TecHouse has been instrumental in advancing our technological platforms, significantly contributing to financial inclusion."
In 2023, the BK Foundation was launched to enhance the livelihoods of Rwandans nationwide. "In a country like Rwanda, the BK Foundation is essential. While we are profitable, we also need to be good corporate citizens," Prosper explained. "The foundation focuses on education, innovation, and environmental conservation. While financial empowerment remains a core objective, we also engage with communities and provide scholarships."
BK Group to Embrace ESG Initiatives
"Looking forward, we will continue to emphasize innovation, digitization, and services, with a renewed focus on environmental, social, and governance (ESG) aspects, which are vital for the group's future," Prosper stated. "The foundation will support these initiatives, ensuring our relevance not only in Rwanda but across the continent."
"Based on my experience, I strongly believe in the business case for gender diversity. It's not just beneficial—it's essential. The diverse perspectives brought to the table can significantly enhance the quality of our operations," Prosper concluded.
Management at BK Group remains dedicated to enhancing customer satisfaction and expanding into new markets, attracting more Rwandans as clients. Key growth initiatives include the "Nanjye ni BK" campaign, further digitalization of services, and the BK Ingenzi Club, designed for the bank’s most loyal customers, celebrating three decades or more of partnership.