BK to pay shareholders Rwf11 billion dividends

Bank of Kigali shareholders have approved a 16.33 dividend payout per share for the year ended 2014. This is an increase from Rwf11 and Rwf6.5 paid to shareholders in 2013 and 2012, respectively. Announcing the payout after the bank’s annual general meeting on Thursday, Lado Gurgenidze, the lender’s board of governors chairman, said the total dividend payout for the year will be close to Rwf11 billion compared to Rwf7.42 billion in 2013. This represents 60 per cent of the bank’s 2014 net income, up 50 per cent in 2013, he said. Gurgenidze attributed the growth in dividend payout to the profitability of the bank, which was realised in the last three years. “The dividend payout has almost doubled in a period of three years…we will continue to focus on providing good services to attract more clients and maintain this kind of payout ratio,” Gurgenidze added. He was addressing reporters after the bank’s annual general meeting at Rwanda Revenue Authority headquarters in Kimihurira. Speaking at the event, James Gatera, the Bank of Kigali chief executive officer, said the bank’s satisfactory service delivery has boosted its performance as reflected in its net earnings. Gatera urged Rwandans to buy the bank’s shares, saying it is one of the most valuable on the local bourse, meaning it gives good return on investment. Commenting on claims that the bank has shunned some clients in the retail banking segment, Gatera said the bank’s plan is to support business with projects that can develop the economy. He added that the lender has strong presence in retail banking. He pointed out that the biggest challenge for most retail businesses is unsecured personal loans. He, however, revealed that plans were underway for the bank to engage in non-risky unsecured loans. Valence Nzeyimana, a shareholder with 100 shares from Groupe Scholaire St Joseph, was optimistic about the bank’s future performance, saying he would buy more of the bank’s stocks. “This will promote more investments in the bank since now the return on investments is visible. I am looking forward to acquiring more shares,” Nzeyimana said.

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BK to pay shareholders Rwf11 billion dividends