BPR Bank Rwanda has posted a 24 per cent increase in operating income for the first half of 2024, reflecting strong revenue growth driven by a sharp rise in net interest income despite higher expenses and impairment charges. The bank's total operating income before impairment charges rose to Rwf47.0 billion for the six months ending June 30 this year up from Rwf38.1 billion in the same period last year, as outlined in its recently published half-year financial statements. Net profit for the period increased by 21.9 per cent to Rwf12.4 billion, compared to Rwf10.1 billion a year earlier. ALSO READ: What’s the fate of BPR shareholders and delayed dividends payout? According to the bank, this growth was boosted by a 34 per cent rise in net interest income, which reached Rwf38.8 billion. Additionally, the increase in interest income, which surged by 33 per cent to Rwf53.5 billion, was fuelled by stronger lending activity and improved yields on interest-earning assets. Interest expenses also rose, reaching Rwf14.8 billion, up from Rwf11.3 billion. The bank saw a decline in net fee and commission income, which dropped to Rwf5.0 billion from Rwf6.1 billion, due to higher fee and commission expenses. However, foreign exchange income more than doubled to Rwf1.9 billion, compared to Rwf704.9 million in the previous year. Operating expenses increased to Rwf23.3 billion from Rwf21.6 billion, mainly due to higher employee benefits and depreciation charges. Additionally, impairment charges on financial assets surged to Rwf6.6 billion, up from Rwf1.7 billion last year, reflecting the bank’s cautious stance amid economic uncertainties. ALSO READ: BPR Bank Rwanda registers Rwf25bn profit after tax Total assets grew to Rwf971.6 billion as of June 30, 2024, up from Rwf860.3 billion at the end of 2023, driven by higher balances in loans, government securities, and cash holdings. Customer deposits also saw significant growth, rising to Rwf674.9 billion from Rwf588.6 billion, indicating continued confidence in the bank’s financial stability. BPR Bank’s capital ratios remained robust, with a total capital ratio of 20.5 per cent and a Tier 1 capital ratio of 20.5 per cent, both comfortably above the regulatory minimum requirements. The bank remains focused on maintaining asset quality and enhancing operational efficiencies while navigating a challenging economic landscape.
