BK Group Plc Reports 22.5% Increase in Net Income in HY2023 Interim Report

Published On: September 8, 2023Company: BK Group Plc (BOK.rw)
What are the notable financial highlights for BK Group Plc's HY2023 Interim Report?
BK Group Plc reported a 22.5% increase in Net Income, Total Assets and Net Loans & Advances increased by 16.1% and 14% respectively. Shareholders' Equity increased by 13.9%. The Group is adequately capitalized with a good Total Capital to Risk Weighted Assets ratio at 23.5%. There was significant growth in total interest income and operating income, with overall Asset Quality improving.

Summary of BK Group Plc HY2023 Interim Report

  • BK Group Plc has reported an increase in Net Income of 22.5%, reaching FRw 36.9 billion (US$31.7 million) for the period ended June 30, 2023.
  • Return on Average Assets (ROAA) and Return on Average Equity (ROAE) is recorded as 3.9% and 22.5% respectively.
  • Total Assets for the company saw an increase of 16.1% year-on-year to reach FRw 1,906.5 billion (US$1,636.0 million).
  • The Net Loans and Advances experienced an increase of 14.0% year-on-year to FRw 1,155.7 billion (US$991.8 million).
  • Client Balances & Deposits increased by 14.5% year-on-year to FRw 1,173.9 billion (US$1,007.4 million).
  • Shareholders’ Equity also saw an increase of 13.9% year-on-year to FRw 337.5 billion (US$289.7 million).
  • Total interest income rose by 10.4% year-on-year due to higher income from loans and advances, and a decrease in the cost of funds.
  • Total operating income rose by 22.5% while total operating expenses increased by 19.0% year-on-year.
  • Loan loss provisions increased by 24.7% year-on-year aligning with the growth of the loan book and taking into account provisioning for possible adverse macro conditions.
  • The Group’s asset quality is deemed to be improving, with Non-Performing Loans (NPLs) ratio and Cost of Risk maintained at 2.3% and 2.0% respectively.
  • The Group proves to be adequately capitalized with Total Capital to Risk Weighted Assets at 23.5%.
  • Net Loans/Total Assets ratio was recorded at 60.6%.
  • Liquid Assets by Total Deposits saw an increase from the previous year, being recorded as 50.4% in 2023 compared to 45.4% in 2022.

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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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