Bank of Kigali Group PLC has registered a Rwf38.4billion of profit after tax, an increase of 3.0% y-o-y; with Return on average assets and Equity reaching 3.3% and 16.0% respectively for the period ended 31st December 2020.
Nathalie Mpaka, the BK Chief Financial Officer highlighted the financial statement for the year ended December 2020 in which she also stated that the bank’s total assets also reached Rwf1,304.0 billion as at 31st December 2020, indicating steady growth for the bank.
Mpaka made the revelations on March 31st during a virtual event to announce the BK Group’s IFRS-Based Audited Q4 & Full Year financial results performance. The report also indicated that total interest income rose by 19% to Rwf112.8bilion while the net loan book grew by 25% to Rwf851.1billion year-on-year (Y-o-Y).
BK’s interest rose to 54% Y-o-Y to Rwf32.7billion in line with growth in customer deposits to Rwf790.8bilion though the overall interest margin decreased 10.7% from 11% in 2019.
Mpaka also showed that despite COVID-19 non-interest income increased 2.3% Y-o-Y to Rwf26.8billion though loan loss provisions rose 82.7% to Rwf39.3 billion and non-performing loans increased to Rwf71.3billion from Rwf45.6billion in 2019.
Commenting on the performance, Dr. Diane Karusisi, Bank of Kigali’s CEO said that as business activity resumes, the group is hoping to take advantage of opportunities presented by economic recovery.
She noted that like other players, they experienced effects of the lock-down and other measures to curb the spread of the virus including increased credit risk in their banking business, affecting the cost of risk that has soared to 4.5 per cent.
“We have managed operating costs with strict discipline, and our insurance, investment banking and technology businesses have grown healthily, providing much needed diversification for the Group’s income,” she said.
Rwanda Government has to date rolled out Rwf350billion fund with plans to start supporting businesses affected by COVID-19 – which include banks, hotels and hospitality services, construction, education, manufacturing among others.
Dr. Karusisi said that in conjunction with government led economic recovery efforts, Bank of Kigali will also be up to the game to ensure that its remains relevant in providing financial support to its clients.
“There are many ways of financing these (affected businesses) to recover through refinancing the loans at a national rate but we stand to provide our clients with more facilities to help them recover from the crisis,”.
Dr. Karususi said that its evident there is a slow recovery in the activities but stated that the bank will be there to accompany them through.