BK Group has reported a 26.7 percent jump in net profit to Sh20.4 billion for the 9 months ended September 30, driven by robust growth in interest income.
BK Group’s total interest income rose by 10.8 percent to SH18.9 billion supported by higher income from loans and advances which grew by 15.8 percent to Sh144.5 billion.
Total assets increased 13.3 percent in the nine months to SH240.9 billion, outpacing the total Rwandan banking sector growth of 11.2 percent in the period.
BK Group is listed on both the Rwanda Stock Exchange (RSE) and the Nairobi Securities Exchange (NSE).
“The notable growth we have witnessed is a result of the cohesive efforts across all subsidiaries within the Group. The synergy among these entities has played a pivotal role in driving our success and reinforcing our position in the market,” said the BK Group CEO, Béata Habyarimana.
The Board of BK Group recently approved the payment of an interim dividend, which will be disbursed at the end of December.
“These dividends are a testament to our commitment to shareholder value. We appreciate the ongoing support of our stakeholders and look forward to continued success in the last quarter of the financial year,” said the Group CEO.
Total operating income grew by 20 percent to SH7.3 billion, underscoring the strong growth in interest from customer loans, increased trade volume and economic activities.
Loan loss provisions rose by 24.6 percent to SH1.8 billion in tandem with the loan book growth, while holding a prudent provisioning as per International Financial Reporting Standards (IFRS 9) guidelines.
“Asset quality recorded improvement with non-performing loans ratio and cost of risk at 4.3 percent and 2.2percent from 4.6percent and 1.5percent respectively year-on-year, noted the Bank of Kigali CEO Diane Karusisi.
BK Group’s other subsidiaries, BK General Insurance, BK TecHouse and BK Capital Ltd all recorded strong positive growth in the nine-month period.
BK General Insurance registered a 16 percent growth in profitability to Sh301.2 million compared to Sh265 million reported in same period last year.
