Bank of Kigali raises dividends as profit hits $54m
Friday March 31 2023
Bank of Kigali (BK Group) net profit for the year ended December 2022 rose by a 15.1 percent to Rwf59.7 billion ($53.8 million), prompting the board to increase dividend payout.
The bank, which is listed on both the Nairobi and Rwanda stock markets, reported the rise in earnings from Rwf51.9 billion ($46.8 million) on the back of a 14.5 percent growth in the loan book to Rwf1.1 trillion ($992 million).
The lender has recommended a dividend of Rwf32.5 ($0.029), amounting to about Rwf29.8 billion ($26.8 million) or half of the group’s after-tax profit.
The latest dividend is a rise from Rwf28.7 ($0.026) that was paid for each ordinary share in the previous financial year.
BK Group CEO Béata Habyarimana said the lender’s subsidiaries reported strong performances during the year, helping boost the bottom-line.
“We remain committed to delivering higher value for our shareholders and investors and are confident that we will continue to achieve even better results in the year 2023,” said Ms Habyarimana.
BK Group’s net interest income increased to Rwf137 billion ($123.5 million) from Rwf136 billion ($122.6 million) on the back of increased lending while non-interest income rose 22.8 percent to Rwf26.3 billion (23.7 million), helping to boost the bottom-line.
The Group chairman Marc Holtzman noted the asset quality recorded an improvement with non-performing loans (NPLs) ratio dropping to 2.6 percent compared to 5.3 percent in 2021.
“The company's success can be attributed to Rwanda’s post Covid-19 recovery and the group’s focus on improving asset quality and profitability. We are pleased to see double-digit growth across all key performance metrics,” said Mr Holtzman.
BK Group joins other Nairobi Securities Exchange-listed firms in increasing dividends in what has been another good year for banks.
Read: Kenyattas, Equity CEO top in Sh63bn bank dividends
The nine tier 1 lenders—Equity, KCB, Co-operative Bank, NCBA, DTB, Stanbic Bank of Kenya, Absa Kenya, Standard Chartered Bank of Kenya and I&M— raised their dividend payout by 22 percent to $475 million from $390 million as profits soared.