The Bank of Kigali Group Plc has reported a 35 percent increase in net profit to KSh5.8 billion (US$ 51.2 million) for the year ended December 2021, driven by a 20.8 percent rise in total interest income and a double-digit growth in all key performance metrics.
The Nairobi Securities Exchange (NSE) and Rwanda Stock Exchange-listed lender recorded 41.4 percent year-on-year growth in non-interest income to KSh4.2 billion; on the back of increased trade volumes and economic activities.
“We recorded another strong performance in 2021, reflecting economic recovery with improved asset quality and profitability.” said the BK Chief Executive Officer, Dr Diane Karusisi, adding that the group delivered earnings per share of KSh6.44 and a full dividend of KSh3.22 per ordinary share in a show of strong commitment to shareholders.
BK’s net loan book grew by 16.2 percent to KSh111 billion year-on-year, while asset quality continues to improve with NPLs ratio and cost of risk at 5.3 percent and 3.4 percent in 2021 compared to 6.7 percent and 4.5 percent in 2020 respectively.
The percentage of COVID-19 related loans on moratorium reduced to 1.7 percent of the gross loans from 43 percent restructured facilities.
Total interest expenses Increased by 23.3 percent year-on-year to KSh4.5 billion in line with the growth in Customer deposits to KSh109 billion.
Dr Karusisi noted that the Rwandan Financial sector is expected to remain sound and stable. The urban inflation rate stood at 1.9 percent, while the Rwandan currency’s depreciation against the US dollar stood at -3.8 percent as at December 31st, 2021.
She added that BK’s focus remains on non-funded income, deposit mobilization and asset quality improvement.
The Bank served 424,011 retail customers and 36,700 corporate clients in 2021; largely helped by an expanded agency banking network of 3,504 agents who processed over 5.9 million transactions worth KSh76.2 million.
BK’s “IKOFI wallet” registered over 1,850 agro-dealers/agents and over 263,700 farmers as at the end of the year.
Client Balances & Deposits increased 23.2 percent to KSh110 billion (US$ 961.5 million), while shareholders’ equity rose 10 percent to KSh32.2 billion (US$ 281.5 million).
“I am truly proud of the work the BK management team has done in 2021. Our shareholders and investors will be happy with the sustainability of the Group’s results and financial position. Our Net income increased by a significant 35.0% y-o-y, while our total assets increase by 22.0% y-o-y. We are proud of the investment we have been putting towards our digital transformation journey and are happy to report that our new core banking system is fully operational and the usage of our digital platforms significantly increased. All our subsidiaries reported strong performances in 2021. We remain focused on delivering higher value for our shareholders and plan to report even better numbers this year 2022.” commented Marc Holtzman, Group Chairman.
The group subsidiaries, BK General Insurance, BK TecHouse and BK Capital all recorded strong revenue and profit growth.
The Board of Directors have recommended a final and full dividend of KSh3.22 for each ordinary share on the issued and paid up share capital of the company, representing a 50 percent pay-out ratio of the Group’s Net Income for the year ended December 31st, 2021.