Rwanda’s largest bank reports $38.7 million net profit
Bank of Kigali (BK) has reported a full-year net profit of $38.7 million and its an improvement from the $37.5 million posted at the end of 2019.
Bank of Kigali (BK), the largest commercial bank in Rwanda by assets, has reported a full-year net profit of $38.7 million, an improvement from the $37.5 million posted at the end of 2019.
The regional lender is the first NSE-listed bank to report growth in net profit in the financial year that ended on 31st December 2020.
BK’s main revenue stream, net interest income, rose by 19% to $113.5 million in 2020 from $95.3 million in 2019 as income from loan repayments went up. Non-interest income grew conservatively to $27 million from $26.3 million a year earlier.
Bank of Kigali managed to increase its customer deposits to $795 million in 2020 from $646 million a year ago. Loans and advances to customers also increased by 26% to $856 million from $682 million in 2019.
Like most of its peers in the banking industry, BK Group significantly increased its provisions for loan losses to $37 million at the end of 2020, from $18 million at the end of 2019.
The lender managed to reduce its operating expenses by 11% last year to $45.7 million from $51.3 million the previous year.
The company said that the dividends of FRw 14.4 per ordinary share approved during the firm’s AGM on 20th May 2020 will be disbursed after getting approval from the National Bank of Rwanda.