BK Group Plc has announced a net profit of Rwf23.9 billion for the first quarter of 2024, marking a year-on-year growth of 33.6 percent. This strong performance is primarily driven by its subsidiary, Bank of Kigali.

During a press conference held on Friday, May 31, BK executives highlighted that the Bank’s net profit surged by 28.8 percent year-on-year to Rwf22.5 billion.

In 2023, the group raked up Rwf74.8 billion in net income. In the Annual General Meeting of shareholders held on May 22, It announced a dividend payment of Rwf24.18 per ordinary share, representing a 32.3 percent pay-out ratio of the Group’s net income.

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Anita Umuhire, BK’s Chief of Finance, emphasized the significance. "This is a strong performance for us. One key measure we look at is our cost-to-income ratio, which tells us how much of our income is being spent on operating costs. At the end of the first quarter, this ratio was 36.9 percent, down from 42.8 percent.

This means we are becoming more efficient and spending less money to earn our income, which will continue to be a priority for us throughout the year. Our return on investment (ROI) is now 25.3 percent.”

Several factors contributed to this performance. The expansion of the loan book, combined with controlled funding costs, resulted in a healthy 23.4 percent year-on-year growth in net interest income.

Additionally, there was a strong performance in fees and commissions, driven by increased trade finance and remittances businesses, as well as greater uptake of digital channels.

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Diane Karusisi, Chief Executive Officer, addressed the challenges faced. "Loan loss provisions increased by 26.2 percent year-on-year due to the staging migration on distressed exposures. The Bank’s total assets stand at Rwf2.1 trillion, funded by customer deposits of Rwf1.4 trillion, with Rwf1.3 trillion allocated to loans and advances to customers.”

"The bank remains adequately capitalized, with a capital adequacy ratio of 19.6 percent, up from 19.4 percent in 2023.”

"We are proud of the cost savings achieved, maintaining the momentum of cost reduction on a quarter-by-quarter basis will be our next challenge.

I want to highlight our Nanjye ni BK campaign, a retail banking initiative designed to expand our customer base and enhance service delivery.”

Through this campaign, BK aims to onboard over 100,000 new clients.

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Bank of Kigali aims to establish itself as the leading retail bank, transitioning from its traditional focus on business banking, corporate services, SMEs, and agribusiness.

"Over the past year, the bank has made investments to position itself as the top choice for retail banking. The bank is committed to offering the best digital experience and creating a strong community among its clients, particularly targeting youth and sole traders where its presence has been minimal,” Karusisi said.

Beata Habyarimana, Group CEO, highlighted that the bank's strong performance in the first quarter reflects the economy's resilient rebound, "For the future, we expect greater contributions from our other subsidiaries. Both BK General Insurance and BK Capital have shown good growth, playing a role in expanding access to financial services for the population.”

In her view, the bank's future strategy maintains a dual emphasis on prioritizing customer satisfaction and improving convenience for clients. This commitment is exemplified by campaigns aimed at retailers and an array of offerings tailored for SMEs. Additionally, the bank is actively progressing digital product innovations across banking, insurance, and investment services.

"We remain a listed company on both the Nairobi Stock Exchange and the Rwanda Stock Exchange, where we hope to see increased market participation. Additionally, we are witnessing our impact grow in the realm of sustainable finance. I would say we are on track to meet our expectations for the full year of 2024,” she said.