BK profit hits Rwf8.1bn in second quarter

Bank of Kigali (BK) has posted a total profit of Rwf8.1 billion in the second quarter of the year, representing a 4.5 per cent growth compared to Rwf7.7 billion the previous period.
Mark Holtzman, the chairman board of governors of Bank of Kigali, addresses the media at the news conference yesterday. (Courtesy)
Mark Holtzman, the chairman board of governors of Bank of Kigali, addresses the media at the news conference yesterday. (Courtesy)

Bank of Kigali (BK) has posted a total profit of Rwf8.1 billion in the second quarter of the year, representing a 4.5 per cent growth compared to Rwf7.7 billion the previous period.

This represents an increase of 17.4 per cent from Rwf6.9 billion year-on-year.

 

The bank’s net income increased marginally year-on-year to Rwf10.9 billion during the period, according to latest figures from the institution.

 

Its total assets stood at Rwf619.1 billion as at June 30, up 14.8 per cent on an annual basis, while gross loans rose by 1.2 per cent during the reporting period and 22.3 per cent compared to the same period last year to Rwf356.6 billion, the lender’s financial statement released yesterday indicates.

 

Bank of Kigali is Rwanda’s biggest bank by total assets.

While presenting the financial statement, Dr Diane Karusisi, Bank of Kigali chief executive, said the lender’s return on average total assets and equity of 3.8 per cent and 22.1 per cent, respectively, while its total assets grew by 6.6 per cent in second quarter, and rose by 14.8 per cent year-on-year to Rwf619.1 billion.

Karusisi said net loans and advances increased by 0.8 per cent over the period, and 24.2 per cent year-on-year to Rwf349 billion.

Its net interest income was up by 8.7 per cent to Rw14.5 billion, and net non-interest income was at Rwf5 billion, operating income rose 4.7 per cent to Rwf19.5 billion, while total operating costs increased by 7.2 per cent to Rwf9.4 billion, said chief finance officer Nathalie Mpaka.

Karusisi attributed the lender’s performance to increased confidence from clients and shareholders, and reiterated its commitment to unveil more innovative products that meet customer needs.

“As the largest bank in the local market, we are committed to supporting economic growth by offering world-class services and more affordable and innovative products,” she noted. She added many of the innovations will target unbanked masses to enhance financial inclusion. “We seek to offer the unbanked population affordable financial products that will enhance access to credit, while boosting financial inclusion,” she said.

The bank is also looking at increasing its footprint in the region, she said.

According to Lawson Naibo, the chief operating officer, the bank processed over 460,000 transactions, worth Rwf29.5 billion, during the reporting period. Overall, the bank served over 270,000 retail customers, and 27,500 corporate clients. It also expanded its agency banking network to 1,178 agents. Naibo said the bank had 303,245 mobiserve users, up from 243,719 users.

Retail clients’ balances and deposits reached Rwf96.9 billion, up by 14.9 per cent year-on-year, while those of corporate clients were at Rwf223.7 billion, representing 2.6 per cent growth.

Meanwhile, Naibo said the bank will continue expanding its remittance offering, through “BK MONEY” allowing customers to send money to any mobile number any time anywhere. The bank has 78 branches, 89 ATMs and 941 POS terminals.

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