The Bank of Kigali Group has announced the half year financial results indicating tremendous performance with a general growth across all areas especially increase in net income and total assets year-on-year (y-o-y).
The results presented this August 30th, 2024, showed that the Group’s net income stood at Rwf47.8billion posted- indicating an increase of 29.5% year-on-year.
Return on average assets (ROAA) and Return on average equity (ROAE) had respectively reached 4.3% and 24.5%, while its total assets also increased 10.1% from Rwf2,333.2billion as at June 30th, 2024.
The financial report also indicated an increase in net loans and advances by 14% to Rwf1,418.6billion as client’s deposits also increased by 6.5% to Rwf1,463.7billion while stakeholder’s equity increased by 13% to Rwf414.2billion.
Dr. Uzziel Ndagijimana, the BK Group CEO said that the good performance was as a result of the good management of the group and the good economic environment in Rwanda.
Rwanda’s economy is currently one of the fastest growing economies, picking up from the COVID-19 effects and expected to steadily grow. The current economic growth stands at a rate of 9.7% and Rwanda is striving to reach 10% by 2027 as its inflation and Rwandan franc depreciation decreased.
The Bank of Kigali plc, a subsidiary of the Group, is one of the largest drivers of the above performance.
Dr. Diane Karusisi, the BK Plc CEO said that they are happy with the performance of the first half of the year which is in line with the indications that were recently tabled to investors and the public during the BK 2024 Annual General Assembly.
“We are very much in line with the performance we expect at the end of the year. Something we are quite happy with is the way we have been able to contain our cost escalation and costs have only increased by 8% year-on-year,” Karusisi said.
Comparing the data from revenues growth and decreased costs, Karusisi said that the bank subsidiary has been able to deliver a very good profit after tax, with an increase of 22.8% year-on-year at Rwf46billion.
Though the Non-Performing Loans (NPL) segment remains a challenge, Karusisi said that they are currently confident that the Bank of Kigali will remain profitable, with a return on equity of 29.7%- which is above the usual target of 25%, thus resounding the same message that was committed at the AGM held May, 2024.
