BK Group Plc reported a 5.4 percent rise in net income for the first quarter of 2025, supported by double-digit loan growth and tighter cost controls, as Rwanda’s largest financial services group weathered softer non-interest income and rising operating expenses.
According to an emailed statement from the Rwanda Stock Exchange, BK Group’s performance as “a strong signal of balance sheet resilience and disciplined execution,” adding that “investors continue to find confidence in the Group’s ability to navigate macro uncertainty while delivering value.”
Net income rose to Rwf25.2 billion ($17.8 million) in the three months through March, up from Rwf23.9 billion a year earlier, as operating expenses fell by more than 10 percent and interest income climbed 12.2 percent. The Group’s return on equity held steady at a robust 22.3 percent.
The bank’s total assets expanded by 3.3 percent to Rwf2.61 trillion, with net loans and advances rising 6.5 percent to Rwf1.55 trillion. Customer deposits grew 2.3 percent over the quarter to Rwf1.68 trillion. The loan-to-deposit ratio stood at a comfortable 84.5 percent, while the NPL ratio eased to 3.6 percent, staying well below the 5 percent regulatory threshold.
Despite the uptick in core income, non-interest revenue slumped by 33 percent, dragged down by a sharp drop in fees, commissions, and other charges. Digital channels remained a bright spot, with 2.63 million digital transactions processed during the quarter, up from 1.96 million in Q4 2024.
Across its subsidiaries, BK TecHouse reported 45 percent revenue growth, driven by surging demand for broadband and digital payments. BK Capital more than doubled its assets under management to Rwf92.3 billion, while BK General Insurance saw premiums rise but posted lower profits due to higher claims.
The Group maintained strong capital buffers, with core capital representing 20.5 percent of risk-weighted assets. Liquidity also remained healthy, supported by a 37.1 percent liquid assets-to-assets ratio.
At its annual meeting earlier this month, shareholders approved a final dividend of Rwf29.34 per share. The payout includes an interim dividend issued in December and offers a dividend reinvestment plan at a 5 percent discount to market.
“We are pleased with the momentum carried into the first quarter of 2025 across all our subsidiaries, which reflects our continued focus on growing our core revenue, strengthening asset quality, and delivering sustainable returns to our shareholders. Despite headwinds in the macro environment, our disciplined execution and innovation across business lines have allowed us to remain resilient and forward-looking,” BK Group CEO, Uzziel Ndagijimana said.
BK Group is listed on the Rwanda Stock Exchange and cross-listed on the Nairobi Securities Exchange. It operates across banking, insurance, asset management, and technology through five subsidiaries.
