Bank of Kigali (BK Group) net profit for the first quarter ended March 2023 rose by a 14.5 percent to Rwf17.88 billion ($16 million), driven by increased interest and transaction income.
The bank, which is listed on both the Nairobi and Rwanda stock markets, reported the rise in earnings from Rwf15.6 billion ($13.95 million) on the back of a 1.4 percent growth in the loan book to Rwf1.12 trillion ($1 billion).
“BK Group demonstrated a great performance in Q1 2023, showcasing the resilient rebound of the economy, while also achieving notable advancements in asset quality and profitability,” said Béata Habyarimana, chief executive at BK Group.
The lender’ net interest income increased to Rwf36.17 billion ($32.35 million) from Rwf33.3 billion ($29.79 million) on the back of increased lending.
Net fees and commissions income more than doubled from Rwf5.11 billion ($4.57 million) to Rwf10.66 billion ($9.53 million) while other income increased by 50 percent to Rwf6.37 billion ($5.7 million).
However, operating expenses grew by 24 percent to Rwf26 billion ($23.25 million) in the period credit impairment losses jumped three times to Rwf6 billion ($5.37 million).
The Bank of Kigali CEO Diane Karusisi noted that asset quality continued to improve with non-performing loans ratio and cost of risk both standing at 2.6 percent at the end of the first quarter.
Dr Karusisi also said the percentage of Covid-19 related loans on moratorium reduced to 0.3 percent of the gross loans, while the cost to income ratio improved to 38.5 percent from 39.9 percent in the first quarter of last year.
BK Group joins other Nairobi Securities Exchange-listed banks in announcing a rise profit in the quarter that has also witnessed a rise in increased provisioning for bad loans.
Equity, KCB, Cooperative Bank of Kenya, NCBA, DTB, Stanbic Bank of Kenya, and I&M have all announced a rise in profits.