BK Group PLC registered a net profit of Rwf 13.4 billion (US$ 15.4 million) the first half of 2018, an increase of 17.8 per cent compared to the previous year’s first half. The Group recorded Rwf 11.38 billion profit after tax in 1H-2017.

The growth was driven by different initiatives and campaigns conducted in addition to efficiency in operating cost management and a solid growth on all its business lines, according to Dr Diane Karusisi, the Bank of Kigali CEO. BK Group Plc is composed of 4 subsidiaries, Bank of Kigali PLc, BK General Insurance Ltd, BK Techouse Ltd, BK Capital Ltd

Commenting on the group’s performance, BK Group PLC Chief Executive Officer, Dr. Diane Karusisi, said: “BK Group Plc continues to demonstrate strong performance reporting a Net Income growth of 17.8% y-o-y enabled by solid growth on all our business lines as well as effective cost management. Going forward, we will remain focused on innovation and digitization to further drive growth, efficiency gains and cost optimization in all the subsidiaries. Our secondary offer, including the cross-listing on the Nairobi Securities Exchange is slated later this year. We will be the first Rwandan company to cross-list in Nairobi and we are excited to offer regional and global investors a new opportunity to participate in Rwanda’s growth story.”

1H 2018 Financial Highlights

Net Interest Income increased by 16.1% y-o-y to FRw 35.3 billion. Net Non-Interest Income amounted to FRw 14.8 billion, an increase of 7.0% y-o-y. Total Operating Income in 1H 2018 reached FRw 50.1 billion, a growth of 13.3% y-o-y. Total Recurring Operating costs decreased by 0.4% y-o-y to FRw 21.1 billion resulting to a Cost/Income Ratio of 42.1%. The bank fully adopted IFRS9 impairment model. The Group reported Profit before tax of FRw 22.2 billion in 1H 2018, up 32.7% y-o-y.

As at 30 June 2018, the Group’s Total Assets stood at FRw 731.8 billion; up 1.7% y-o-y. Gross Loans increased by 2.1% q-o-q and 9.0% y-o-y to FRw 508.4 billion, while Net Loans increased by 0.8% q-o-q and 6.8% y-o-y to FRw 481.2 billion. Gross Loans/Total Assets ratio stood at 69.5% as at 30 June 2018, compared with 64.9% in the same period last year. Client Balances & Deposits reached FRw 472.3 billion, recording an increase of 0.5% q-o-q and a decrease of 2.4% y-o-y. Total dividend payable balance stood at FRw 14.8 billion; this includes a provision of FRw 5.4 billion from current year profits as per dividend payout policy. Shareholders’ Equity equaled FRw 129.9 billion, up 0.8% q-o-q and 12.5% y-o-y. Liquid Assets divided by Total Deposits stood at 39.5% as at 30 June 2018, reducing from 43.2% in June 2017.

1H 2018 annualized ROAA stood at 3.7%, whereas annualized ROAE stood at 21.2% compared to 3.4% and 20.3%, respectively, in 1H 2017