Bank of Kigali, Rwanda’s leading lender by market shares and assets, has reported a surge in profits after tax for the financial year ending 2011.
According to the audited results, the lender reported an increase in net profits to Rwf8.7 billion ($14.4 million) in 2011, from Rwf6.2 billion ($10.4 million) in 2010.
The Board of Directors also recommended a 50 per cent dividend payout of the lender’s audited IFRS-based net earnings for 2011, 2012 and 2013.
“This payout in respect for 2011 will be Rwf6.5 ($0.01) per share, subject to withholding tax where applicable,” the lender said in a statement.
BK’s total assets grew by 45.6 per cent to Rwf287.9 billion ($476.3 million) as of 31 December last year, while net loans went up by 21.4 per cent to 123.1 billion ($203.7 million) at the same period while client deposit increased by 33.4 per cent to Rwf181 billion ($299.5 million).
“We have had a very successful year at the bank, where we continue to grow our balance sheet and accounted for over 50 per cent of the banking sector’s profitability. This year, management intends to begin deploying liquidity from the capital raised in the IPO and long-term credits lines to increase the bank’s loan book, especially in the retail and SME sectors,” BK’s Chief Executive Officer, James Gatera noted.
“The bank will continue to increase its branch footprint and invest in electronic channels.”
The lender’s net interest income amounted to Rwf16.6 billion in 2011 representing 36.2 per cent compared to the previous year.
The bank also reported total operating costs of Rwf14.3 billion in 2011, an increase of 41.3 per cent compared to the same period the previous year owing it to continuous expansion.
“This brought the cost/income ratio to 48.4 per cent last year from 47.5 per cent in 2010,” the lender mentioned.
“This year, we will focus on translating our competitive advantage in terms of superior access to capital into securing and enhancing our dominant position in the Market and growing the scope and scale of the bank’s retail banking franchise,” BK’s Chairman of Board, Lado Gurgenidze noted.
“Net fee and commission income amounted to Rwf1.1 billion in quarter four, down 4.1 per cent quarter on quarter (q-o-q) and up 41.3 per cent in 2011 compared to the same period the previous year—while total operating income reached rwf8.2 billion in quarter four, up 5.9 per cent quarter on quarter (q-o-q) and 33 per cent year over year (y-o-y),” the lender said in the financial statement.