BK Group Plc, Rwanda’s largest financial services provider, posted a 21.7 percent rise in full-year profit as strong loan book expansion and cost-cutting measures bolstered earnings, allowing the lender to raise its dividend.
Net income surged to Rwf91.0 billion in 2024, up from Rwf74.8 billion a year earlier, according to the company’s audited financial results. The profit growth was driven by an increase in interest income and a tighter grip on operational costs, lifting the return on equity to 21.2 percent from 20.4 percent in 2023.
The bank’s net interest income the primary revenue driver jumped 18 percent to Rwf246.8 billion, fueled by a 13 percent rise in total loans to Rwf1.2 trillion. The lender expanded its loan portfolio despite higher borrowing costs, benefiting from sustained demand across key economic sectors.
BK Group raised its total dividend payout to Rwf46.1 billion, translating to Rwf28.9 per share, up from Rwf26.2 a year earlier. The payout ratio stood at 50 percent, underscoring the bank’s strong capital position and commitment to shareholder returns.
The cost-to-income ratio fell to 41.7 percent from 43.5 percent, reflecting efficiency gains and digital transformation efforts. Meanwhile, the bank’s non-performing loan ratio remained stable at 2.4 percent, signaling robust credit risk management despite a volatile macroeconomic environment.
BK Group’s total assets climbed 13 percent to Rwf2.58 trillion, while deposits grew to Rwf2.22 trillion, a 10 percent increase from 2023.
The lender, which also operates insurance and investment arms, reaffirmed its focus on digital banking and regional expansion to sustain growth. BK’s stock closed at Rwf320 on the Rwanda Stock Exchange, reflecting a 15 percent gain year-to-date.
