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The net profit of Bank of Kigali (BK Group) surged 41.5 percent in the six months to June on the basis of higher interest and non-interest income. The bank, which is listed on the Nairobi (NSE:) and Rwanda stock exchanges (NSE: BKG, RSE: BK), reported a net profit of Sh2.5 billion in the review period, up from Sh1.8 billion in the previous comparable period.
Profit rise implies a return for the publicly traded Rwandan banks and matches a trend seen by Kenyan lenders as the economy recovers from Covid-19 disruptions. The increase was primarily driven by a 29.9% increase in net interest revenue to Sh7.3 billion, which was backed by an increase in net loans and advances to clients from Sh89.8 billion to Sh100.1 billion.
Despite a 46.1 percent increase in operational expenses to Sh1.7 billion, non-interest revenue rises by 43.9 percent to Sh1 billion, supporting bottom-line growth. Bank of Kigali aims to maintain the growing pace in the second half of the year, which will be aided in part by the relaxation of Covid-19 control measures. “I am confident that our performance will continue to improve making BK Group Plc more attractive to investors who are looking for strong and stable returns,” said Diane Karusisi, the chief executive at BK Group.
“The recent mass vaccination campaign in Kigali gives hope that full recovery can be expected towards the end of the year.” BK Group’s net profit fell 4.1 percent last year, from Sh4.51 billion to Sh4.32 billion, due to increasing coronavirus-related loan loss provisions. Rwanda has thus far provided around 1.51 million doses of Covid-19 vaccinations, corresponding to approximately 8.4 percent of the population and one of Africa’s greatest immunization coverage ratios.
The institution is Rwanda’s largest commercial bank by assets, with 68 branches scattered across the country’s major towns and capitals with an asset base of Sh153.6 billion. Since February 2013, BK Group has also maintained a presence in Kenya through a representative office.
Bank of China, FirstRand Bank, HDFC Bank, Mauritius Commercial Bank, Nedbank Limited, Co-operative Rabobank U.A, and Société Générale are among the other lenders holding representative offices in Kenya.