Summary
- Non-interest income grew by 43.9 percent to Ksh1 billion ($9.1 million) to support growth in the bottom-line despite a 46.1 percent rise in operating expenses to Ksh1.7 billion ($15 million).
- Bank of Kigali hopes to keep up with the growth momentum in the second half of the year, partly helped by loosening of Covid-19 control measures.
Bank of Kigali (BK Group) net profit for six months to June rose 41.5 percent on the back of increased interest and non-interest income.
The bank, which is listed on both the Nairobi and Rwanda stock markets, reported Ksh2.5 billion ($22.7 million) net profit in the review period up from Ksh1.8 billion ($16.4 million) posted in the preceding similar period.
The profit growth signals a recovery for the publicly-traded Rwandan lender and mirrors the trend that has been seen by lenders in Kenya as the economy picks up from Covid-19 disruptions.
The growth was mainly driven by a 29.9 percent growth in net interest income to Ksh7.3 billion ($66.5 million) supported by growth in net loans and advances to customers from Ksh89.8 billion ($818 million) to Ksh100.1 billion ($912 million).
Non-interest income grew by 43.9 percent to Ksh1 billion ($9.1 million) to support growth in the bottom-line despite a 46.1 percent rise in operating expenses to Ksh1.7 billion ($15 million).
Bank of Kigali hopes to keep up with the growth momentum in the second half of the year, partly helped by loosening of Covid-19 control measures.
“The recent mass vaccination campaign in Kigali gives hope that full recovery can be expected towards the end of the year.”
BK Group last year posted a 4.1 percent drop in net profit from Ksh4.51 billion ($41 million) to Ksh4.32 billion ($39 million) on the back of increased coronavirus-linked loan loss provisions.
Rwanda has so far administered more than 1.51 million doses of Covid-19 vaccines, equivalent to about 8.4 percent of the population and among the highest vaccination coverage ratio in Africa.
The lender, with an asset base of Ksh153.6 billion ($1.3 billion), is Rwanda's largest commercial bank by assets with 68 branches spread across the country’s main towns and cities.
BK Group has also been operating a representative office in Kenya since February 2013.
Other lenders with representative offices in Kenya are Bank of China, FirstRand Bank, HDFC Bank, Mauritius Commercial Bank, Nedbank Limited, Co-operatieve Rabobank U.A and Société Générale.
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