The country’s largest Financial Institution, BK Group plc has registered a 33.6 percent increase in net income for the first quarter of 2024 to Rwf23.9 billion, according to the Group’s Financials.
The lender lender’s total assets increased by 26.9 percent year on year to Rwf2.2 trillion, net Loans and advances increased by 18.8 percent year on year to Rwf1.3 trillion, client balances & deposits increased by 30.4 percent year on year to Rwf1.38 trillion and shareholders’ equity increased by 18.8 percent year on year to Rwf389.8 billion during the period.
“BK Group Plc demonstrated a great performance in the first quarter 2024, showcasing the resilient rebound of the economy, while also achieving notable advancements in asset quality and profitability. The Group attained a commendable net income of Rwf23.9 billion, accompanied by substantial growth across all performance indicators,” BK Group Plc CEO, Béata U. Habyarimana said.
Key Highlights
Total interest income rose by 24.7 percent year on year to Rwf45.1 billion supported by higher income from loan and advances, which grew by 18.8 percent in Q1 2024 to Rwf1.32 trillion. Total interest expenses Increased by 1.6 percent year on year to Rwf13.6 billion in line with the growth in customer deposits to Rwf1.38 trillion.
Overall, Net Interest Margin increased to 9.7 percent from 9.5 percent in same quarter in 2023. Non-interest income totalled Rwf19.9 billion representing an increase of 6.2 percent year on year.
Total operating income rose by 18.4 percent to Rwf65.0 billion, while total operating expenses rose by 13.4.0 percent to Rwf24.0 billion. Loan loss provision totalled Rwf8.7 billion.
Asset quality continues to improve with NPLs ratio and cost of risk at both standing at 5.7 percent and 2.2 percent in Q1 2024 compared to 2.6 percent and 2.6 percent respectively in q1 2023. Cost to income ratio stood at 36.9 percent in Q1 2024 from 38.5 percent in Q1 2023. Profit after tax (Net Income) increased by 33.6 percent year on year to Rwf23.9 billion.
As at March 31st, 2024, BK Group Plc is adequately capitalized with Total Capital to Risk Weighted Assets at 22.7 percent. The Group’s Total Assets stood at Rwf2.2 trillion; up 26.9 percent year on year, supported by strong liquidity from customer deposits growth. Net Loans/Total Assets ratio stood 60.1 percent down from 64.2 percent in the same period last year.
Dividend payable balance stood at Rwf22.4 billion; as per approved pay-out ratio of 24.18 for each ordinary share of FY 2023. Shareholders’ Equity increased to Rwf389.8 billion, up 18.8 percent year on year. Liquid Assets divided by Total Deposits decreased to 49.6 percent in Q1 2024 from 44.9 percent in Q1 2023. The Group’s key profitability ratios ROAA and ROAE improved to 4.4 percent and 25.3 percent in Q1 2024 respectively from 4.0 percent and 22.1 percent in Q1 2023.
Bank of Kigali Plc:
- As at March 31st, 2024, the Bank served 395,491 Retail customers and 719 Corporate clients;
- Expanded the Agency Banking Network 4,725 agents as at March 31st, 2024 and processed over 1.8M transactions worth Rwf547.2 million;
- As at March 31st, 2024, the Bank had 67 branches, 104 ATMs and 2,825 POS terminals that accepted most international cards including VISA & MasterCard;
- Retail clients’ balances and deposits reached Rwf331.4 billion as at March 31st, 2024;
- Corporate banking clients’ balances and deposits were Rwf1.3 Trillion as at March 31st, 2024;
- BK Quick now has over 80,540 new registered customers as at March 31st, 2024; and has disbursed over Rwf2.9 billion
BK General Insurance:
- Gross written premium (sales) increased by 21 percent if compared to the previous year Rwf2.523 billion.
- From the Rwf3.056 billion underwritten, Rwf1.2 billion have been paid for during quarter one 2024, which made a loss ratio of 47 percent
- Management expenses for Q1 2024 were Rwf696 million, a slight increase of about 5% compared to the same period of previous year of 2023.
- The profit for the period ended March 31st, 2024 is Rwf1,345 million, a significant increase of about 69 percent compared to the profit for the same period in 2023.
- Total Assets increased by 7 percent in three months from January 2024 to Rwf32 billion in Q1 2024.
BK TecHouse:
- Total sales decreased slightly to 366M RWF, -6 percent YoY, compared to the same period last year.
- BK Techouse registers ~4M total digital users across all platforms, ~2.9 unique, 15 percent YoY growth.
- UrubutoPay Payment merchants increase from 428 to 527, 23 percent YoY growth.
- Urubuto Education MIS registered 175 schools, 25% increase, compared to 140 schools the same period last year.
- Agritech platforms registered 3.1M farmers, 12 percent increase, compared to 2.8M farmers in the same period last year.
BK Capital Ltd:
- BK Capital recorded a net operating income of 412M in Q1 2024, representing a 74 percent year on year growth mainly attributable placement fees from trading and sustainable growth in the fund management assets under management.
- Profit before tax was 75M, representing 183 percent y-o-y growth.
- Assets under management grew by 27 percent year on year to Rwf42.6 billion largely driven by increased product offerings to our retail and institutional clients, with managed account mandates AUM growing by 53 percent year on year.
- Within the Brokerage Business, BK Capital saw an increase in equities turnover of 9445 percent year on year due to high demand on CMR counter, while bonds turnover recorded a decrease of 8 percent due to lower market activity but was able to increase its market share.
END
