BK Group Plc has recorded a 6.9 per cent year-on-year increase in net income to Rwf26.9 billion for the first quarter, driven by strong revenue growth and improved net interest income.

Total operating income rose 13.8 per cent to Rwf72.3 billion, underpinned by higher net interest income and growth in transaction-based services.

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Return on average assets (ROAA) stood at 3.7 per cent, while return on average equity (ROAE) reached 20.9 per cent. Total assets increased to Rwf2,947.3 billion, due to continued balance sheet expansion.

"The Group maintained a disciplined execution of its strategy, focusing on customer centricity, product diversification, focus on retail, SME and agribusiness segments, expansion of existing digital products and the launch of new ones based on the new digital platform in place, as well as on maximising intra-group synergies,” BK Group CEO Dr Uzziel Ndagijimana said.

Ndagijimana added that the Group’s strong capital position provides room for continued investment across its financial services businesses.

"We are focusing on disciplined execution, customer centricity, and expanding into retail, SME and agribusiness segments, while strengthening digital products and intra-group synergies,” he said.

Anita Umuhire, the Group’s Chief Finance Officer, pointed out that operating costs increased 22.6 per cent to Rwf26.4 billion, mainly due to higher administrative expenses, which pushed the cost-to-income ratio to 36.6 per cent.

"Our capital adequacy remains strong and provides support for continued growth,” she said.

At subsidiary level, Dr Diane Karusisi, CEO of Bank of Kigali, said the bank continues to diversify its lending portfolio away from heavy reliance on large corporates toward a more balanced structure.

She noted that corporate lending now accounts for 55.5 per cent, followed by retail at 21.1 per cent, SMEs at 17.7 per cent, and agriculture at 5.5 per cent.

"We want to bring corporate banking below 50 per cent so that we can increase access to finance for segments that were previously underserved,” she said.

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Karusisi highlighted strong digital adoption, with 62.9 per cent of retail clients now active on digital channels, up from 50.3 per cent a year earlier.

However, she pointed to rising loan defaults as the main challenge of the quarter – an issue that must be addressed.

"The main downside of this quarter is asset quality, where the non-performing loan ratio increased to 4.8 per cent from 2.9 per cent at the end of last year.”

She noted that while the ratio remains below the regulatory threshold of 5 per cent, it is above the bank’s internal risk appetite of below 3 per cent, adding that the bank is working closely with affected clients to solve the issue.

Across other subsidiaries, BK Insurance recorded strong growth, with gross written premiums rising 22.3 per cent to Rwf4.30 billion and net profit increasing 58 per cent to Rwf1.15 billion, supported by improved claims performance.

BK Capital also posted strong momentum, with assets under management rising 66 per cent year-on-year to Rwf153.1 billion, while returning to profitability.

BK TecHouse, however, recorded a loss of Rwf206 million, as revenue remained flat and margins came under pressure from higher operating costs.