BK’s net income grows by 32.8 percent
Bank of Kigali (BK), one of the largest banks in Rwanda by assets base, and share holder equity, registered a net income of Rwf 8.2 billion in 2011 from Rwf6.2 billion in 2010, the bank announced yesterday.
The growth was attributed to reinvestment made by the shareholders as well as capital raised through the bank’s Initial Public Offer (IPO).
Last year, government floated its BK shares raising Rwf22 billion that will be used in disbursing loans and expand its branch network.
The bank created a shareholder value for over 6,000 shareholders by generating earnings per share of Rwf12.29 in 2011.
“Having completed the budget planning cycle for 2012, we are looking to continued success of the management team in delivering profitable growth,” James Gatera, the Managing Director of BK told the media.
The growth in the Rwandan banking sector is also attributable to the country’s sound economy which was neither affected by frail regional economies nor international shocks.
The bank’s total assets grew by 47.4 percent in 2011 from Rwf191.7 billion in 2010 to Rwf 291.3 billion.
While net loans also grew from Rwf 101.4 billion in 2010 to Rwf 124.1 billion in 2011, return on average equity fell from 24.5 percent to 17.9 percent.
Gatera reaffirmed the bank’s commitment to taking financial services nearer to the people across the country.
“We are planning (to install) 60 automated machines this year, (establish) 12 new branches as well as mobile vans in the remotest areas offering banking services,” added Gatera.
The bank will soon expand its network in the region although it was not revealed when and which market it is targeting first.
“All we can say is that we are soon venturing into the regional market but we don’t want our competitors to know our business plans,” he noted.
BK has 46 branches in Rwanda and offers retail and commercial banking services to over 100,000 individuals and over 13,000 legal entities.