Bank of Kigali (BK) Group PLC has announced that it recorded Rwf 39.6 billion net income in the first half of 2023.

BK Group constitutes four subsidiaries including the Bank of Kigali, BK General Insurance, BK TecHouse, and BK Capital.

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As usual, the group’s success is mainly based on the performance of the bank, though its other three other subsidiaries are also picking up.

"The bank remains an engine for the group with profit after tax for the bank at Rwf 36 billion,” said Bank of Kigali CEO, Diane Karusisi, during a virtual press conference on Thursday, August 31.

She noted that the bank’s good performance is attributed to two main factors, the first one being a significant increase in the fee income driven by BK’s foreign exchange trading book and the fees collected from its payment facilities.

"The second factor is the quality of our loan portfolio. We have very low NPL (Non-Performing Loan) rates at 2.6 per cent and a cost of risk of two per cent. This is a very good performance that shows discipline in our underwriting processes,” she said.

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As of June 30, the bank served over 375,038 retail customers, over 2,183 corporate clients, 59,260 SME customers and more than 44,268 agri-customers.

During the same period, it processed over 3.5 million transactions worth Rwf 836.2 billion, and had 67 branches, 105 ATMs and 2,984 POS terminals across the country.

The group’s CEO Beata Habyarimana told the media that despite the different challenges on the economic landscape, the group showed resilience, adaptability and commitment, and pledged to remain vigilant and agile in "this uncertain economic environment.”

For the other subsidiaries, BK Insurance registered a profit of Rwf 1.7 billion in the first half of 2023, compared to Rwf 1.6 billion registered in the first half of 2022, while BK TecHouse’s sales revenue increased by 29 per cent from Rwf 574.4 million to Rwf 738.3 million year-on-year.

BK Capital’s net operating income rose to Rwf 752 million in the second quarter of 2023, which represents a 96 per cent growth from the second quarter of 2022.

"In the first half of 2023, BK Group Plc exhibited an impressive performance that not only underscored the economy's resilient rebound but also highlighted significant strides in enhancing asset quality and bolstering profitability,” Habyarimana said.