The group’s total assets also increased by 16.8% to Rwf1.6 trillion (US$ 1,602.2 million) compared to the same period last year.
Net interest income grew to Rwf67.3 billion; with net interest margin decreasing to 9.5% from 10.9% in 2021. As at June 30th, 2022, BK Group Plc was adequately capitalized with Total Capital to Risk Weighted Assets at 22.8%.
Among others, shareholders’ equity increased to Rwf 296.5 billion, up 9.4% while liquid Assets by Total Deposits stood at 45.4% as at June 30th, 2022 an increase from 41.6% in the same period last year.
BK Group Plc is the mother company of four subsidiaries including Bank of Kigali, BK General Insurance, BK TechHouse and BK Capital Ltd.
Bank of Kigali Plc
On the side of Bank of Kigali, net loans and advances increased by 10.6% to Rwf1.0 trillion (US$ 988.9 million), client balances and deposits increased by 19.6% to Rwf1.0 trillion (US$ 1,000.2 million)
The bank also served 422,513 retail customers and 46,648 corporate clients; expanded the Agency Banking Network to 3,853 agents and processed over 1.8 million transactions worth Rwf314.4 million.
As at 30th June 2022, the lender had 68 branches, 98 ATMs and 3,099 Point of Sales (POS) terminals that accepted most international cards including VISA and MasterCard.
Among others; retail clients’ balances and deposits reached Rwf288.1 billion, corporate banking clients’ balances and deposits were Rwf 743.4 billion as June 30th, 2022.
BK Quick now has over 20,066 new registered customers as at June 30th, 2022; and has disbursed over Rwf1.2 billion.
BK’s IKOFI wallet has also registered over 1,852 agro-dealers/agents and over 264,066 registered farmers as at 30th June 2022.
Commenting on the performance; Dr. Diane Karusisi, the Chief Executive Officer of Bank of Kigali Plc said: “Bank of Kigali Plc recorded good performance in Q2 & 1H 2022; our loan book has not grown in line with expectations but we are seeing improvement in asset quality reflecting post-COVID recovery which allows us to record a solid 1st half performance. We look forward to a greater second half of 2022.”
BK General Insurance
BK Insurance registered a profit of Rwf1.5 billion as at the first half of 2022 compared to Rwf1.2 billion registered in the same period last year, representing 28% growth in profitability.
Gross premium increased to Rwf4.9 billion in the first half of 2022 from Rwf4.1 billion in same period last year; reflecting a 21% growth year-on-year.
Total assets decreased by 28% y-o-y to Rwf21.4 billion in the first half of 2022.
BK TecHouse registered a sales revenue of Rwf574.4 million in the first half of 2022 compared to Rwf486.9 million in the same period last year; representing a 18% growth y-o-y.
As at 30th June 2022, BK TecHouse registered over 2.8 million digital consumers where 2.5 million are from Agri-Tech; 301 thousand from Edu-Tech and 13 thousand from civil society and religious organizations.
BK Capital Ltd
BK Capital’s net operating income rose to 383 million in the first half of 2022; a 54% growth from the same period last year due to increased trading on the Rwanda Stock Exchange and sustainable growth in the fund management assets under management.
The Assets under management (AUM) for the Fund management business have grown to Rwf26 billion in the first half of 2022; representing a 49.7% y-o-y growth mainly driven by net inflow in Aguka Unit Trust Fund, which continues to attract new investments based on its value proposition.
Within the Brokerage Business, BK Capital increased bond and equity trading due to an overall RSE turnover growth of 157% and 250% y-o-y in bond and equity, respectively.
Béata Habyarimana, the Chief Executive Officer of BK Group Plc has commended the four subsidiaries’ performance and expressed optimism for further improvements in the second half of this year.
“Great results from all our subsidiaries; I am happy with what the Group’s management team has done in the first half of 2022. 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 24.5% y-o-y, while our total assets increased by 16.8% y-o-y. We remain focused on delivering higher value for our shareholders and plan to report even better numbers the second half of 2022,” she said.
About BK Group Plc
Established in 1966, BK Group Plc is a group company registered with Rwanda Development Board (RDB) and licensed under Law No. 08/99. Bank of Kigali is the largest bank in Rwanda by Total Assets, with 32.2% market share as at March 31st, 2022.
The Group has a short-term credit rating of A1+ and a long-term rating of AA-, with a stable outlook, from Global Credit Rating (GCR). BK Group Plc is listed on the Rwanda Stock Exchange as well as the Nairobi Securities Exchange.