BK Group Plc’s net income rose 8.6 per cent year on year to Rwf56.4 billion in the first half of 2026, up from Rwf51.9 billion in the same period of last year, as stronger operating and non-interest income helped offset a 1.3 per cent decline in its loan book.

The Group’s total operating income increased 15.6 per cent to Rwf152 billion, according to its financial results for the period ended June 30.

Presenting the results on September 2, BK Group CEO Uzziel Ndagijimana said the performance was supported by growth in net interest income and non-funded income - income the bank earns from activities other than lending money and earning interest on loans.

Net interest income increased by 14.8 per cent to Rwf124.5 billion from Rwf108.4 billion in the same period a year earlier, while net non-interest income rose to Rwf27.5 billion from Rwf23.1 billion. The latter was supported by net fee and commission income of Rwf12 billion and foreign-exchange-related income of Rwf7.4 billion.

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Income growth despite smaller loan book

Bank of Kigali CEO Diane Karusisi said the results show that the first half was marked by strong growth in operating income, which rose 15.6 per cent despite a 1.3 per cent decline in the bank’s loan book.

This, she said, shows that the bank is not dependent only on loans, it is able to manage our balance sheets and make profits from its balance sheets.

The bank’s net loans and advances stood at Rwf1.66 trillion as of June 30, down from Rwf1.682 trillion as of the same period of 2025.

At the same time, client balances and deposits increased 11.7 per cent year-to-date to Rwf2.105 trillion.

Karusisi said the bank was able to deploy part of the additional funding into treasury bills and money-market placements while continuing to earn interest income.

The decline in lending, she said, was largely linked to reduced exposure to large corporate borrowers as the bank seeks to diversify towards smaller businesses.

"This is also actually intentional because we&039;ve been in the past many years, we've been wanting to reduce the concentration of our loan book, and hence going into SME lending, we prefer smaller ticket sizes as opposed to large deals,” she said, explaining that larger loan deals carry greater risks in the event of default.

Karusisi said the bank expects stronger loan growth in the second half of the year, supported partly by new digital lending products.

BK remains confident of containing NPL ratio after rise to 6.5 per cent

The Group’s asset quality weakened during the second quarter, with the non-performing loan (NPL) ratio rising to 6.5 per cent at June 30 from 4.8 per cent at March 31.

Karusisi attributed the increase mainly to earlier high-ticket exposures, particularly involving several companies in the construction sector.

"Yes, so it's one sector in particular, construction, and it's not across the sector. It's a few companies in the sector. And we believe it's probably cash flow issues, and we are hoping that by the end of the year we'll be able to clear this credit.”

She said a large manufacturing exposure that had previously been classified as non-performing had been cured and would be reflected in the third-quarter results.

"Our NPL outlook remains below 5 per cent,” she said referring to the ratio recommended by the financial sector regulator, the central bank.

The Group reported an annualised cost of risk of 2.1 per cent and an NPL coverage ratio of 32.8 per cent.

Digital products, sports and EV financing

BK Group also plans to accelerate digital lending, with the bank expected to launch new end-to-end digital products in the coming months.

ALSO READ: BK launches ‘all-in-one’ banking solution to better meet employees’ financial needs

Karusisi said salary advances and overdrafts will increasingly be processed digitally, allowing eligible customers—including SMEs, merchants, agents and retail customers—to apply and receive funds faster.

She said the bank’s customer base increased by about 10 per cent year-to-date, helped partly by its partnerships in sports, including the BK Pro League and Rayon Sports.

The bank is also expanding financing for electric vehicles as fuel prices remain high. Karusisi said the bank has built an EV financing portfolio of close to Rwf5 billion "within a few months.”

ALSO READ: Bank of Kigali, Rwanda Premier League launch BK Pro League in over Rwf3bn deal

Balance sheet remains strong

BK Group’s total assets increased 2.9 per cent year to date to Rwf2.984 trillion, while shareholders’ equity rose 6.9 per cent to Rwf543.4 billion.

The Group maintained strong liquidity, with cash balances with banks at Rwf735.3 billion and liquid assets accounting for 41.3 per cent of total assets. Its core capital ratio stood at 21.1 per cent, while the total qualifying capital ratio was 22.3 per cent.

Outlook

Ndagijimana said the Group will focus on sustaining its revenue growth in the second half of the year by scaling up digital products and diversifying its market segments.

"As an outlook for the rest of the year, the Group will continue to focus on sustaining its revenue growth momentum of H1, mainly through scaling up the newly launched digital products, continuing diversification of our market segments, with more focus on retail banking, SMEs, and agribusiness, as well as the cost of payment.”