BK Group Plc Reports 10.8% Increase in Total Interest Income and Expands Agency Banking Network

Published On: December 18, 2023Company: BK Group Plc (BOK.rw)
What are the key financial takeaways from BK Group Plc's Q32023 report?
The company experienced growth across multiple sectors, including a 10.8% increase in total interest income y-o-y, a 14.7% increase in net interest income, and a 20.9% growth in total operating income. The Bank of Kigali Plc expanded its Agency Banking Network and saw growth in retail and business clients' balances and deposits. Other divisions, such as BK General Insurance, BK TecHouse, and BK Capital Ltd, also reported positive growth in various areas.

Financial Highlights

  • Total interest income increased by 10.8% year-on-year (y-o-y) to FRw 157.6 billion, boosted by a 15.8% increase in income from loans & advances.
  • Net interest income grew by 14.7% to FRw 120.2 billion, although the Net Interest Margin slightly decreased to 10.2% from 9.5% in the previous year.
  • Non-interest income rose by 42.4% y-o-y to FRw 42.7 billion, driven largely by increased trade volume and economic activities.
  • Total operating income saw a y-o-y growth of 20.9% to FRw 162.9 billion.
  • Loan loss provisions increased by 16.0% to 17.7 billion to coincide with the loan book growth.
  • Total Capital to Risk-Weighted Assets at 19.4% indicates that BK Group Plc is adequately capitalized.
  • Total Assets of the group increased by 13.3% y-o-y to FRw 1,989.9 billion.
  • Shareholders’ Equity increased 12.1% y-o-y to FRw 346.6 billion.

Bank of Kigali Plc

  • As of September 2023, the bank serviced 449,205 Retail customers and over 2,665 Corporate clients.
  • The bank expanded the Agency Banking Network to 4,287 agents, processing over 1.9 million transactions worth FRw 499.0 billion.
  • Retail clients’ balances and deposits reached FRw 290.0 billion as at September 30th, 2023.
  • Business banking clients’ balances and deposits were FRw 980.0 billion as at the same date.

BK General Insurance

  • The company registered a Profit of FRw 2.5 billion in Q3 2023, representing a 16% growth y-o-y.
  • Gross Premium increased to FRw 9.3 billion in Q3 2023, a growth of 26%.
  • BK G.I. is compliant with all key prudential ratios.
  • Total Assets increased by 26.1% y-o-y to FRw 30.3 billion.

BK TecHouse

  • Sales Revenue increased by 22.3% to FRw 1.116 billion.
  • The number of digital consumers reached 292 million.
  • Despite a decline in the number of UrubutoPay merchants, the transaction value showed strong growth of 56.7% to FRw 24.3 billion.

BK Capital Ltd

  • Total revenues for the period stood at FRw 1 billion.
  • Assets under management grew by 66% y-o-y, driven by net inflow in Aguka Unit Trust Fund, increased pension contributions, and performance gains.

Useful links

About BK Group Plc (BOK.rw)

BK Group Plc formerly (Bank of Kigali Limited) is Rwanda’s largest commercial bank by assets and licensed by the country’s banking regulator, National Bank of Rwanda. It offers a full spectrum of products and services for retail banking, corporate banking and central treasury. Bank of Kigali SA commenced operations in 1967; initially as a joint venture between the government of Rwanda and Belgolaise, with each owning 50% of the ordinary share capital. In 2007, the government of Rwanda acquired the Belgolaise shareholding which increased its direct and indirect shareholding in the Bank of Kigali to 100% of the entire Issued Shares. The Bank changed its name to Bank of Kigali Limited in 2011 under a new law relating to companies. Bank of Kigali Limited now has 79 branches located in the main towns and cities of Rwanda with its head office in the capital city, Kigali. BK Group Plc has a primary listing on the Rwanda Stock Exchange and a secondary listing on the Nairobi Securities Exchange

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