BK Group Plc has reported a 24.5 percent growth in net profit to KES 3.3 billion for the half year ended June 30 2022. This growth has been boosted by improved interest income from customer loans.
The Rwanda Stock Exchange and Nairobi Securities Exchange listed financial services group recorded improved performance across all its subsidiaries.
Total interest income rose by 8 percent year-on-year to KES 10.8 billion, supported by higher income from loans and advances, which grew by 10.3 percent to KES 118.6 billion.
Total Assets increased by 16.8 percent to KES 188.8 billion as at June 30 2022.
“We’re seeing improvement in asset quality reflecting post-COVID recovery which helped us to record a solid first half performance. We look forward to a greater second half of 2022,” said Bank of Kigali Plc Chief Executive Officer Dr. Diane Karusisi.
The improved macroeconomic environment saw net Loans and advances increase by 10.6 percent to KES 116.5 billion in the six months, as client balances & deposits increased by 19.6 percent to KES 117.9 billion.
Total interest expenses however increased by 36.5 percent to KES 25 billion in line with 19.6 percent growth in customer deposits.
Non-interest income jumped 27.7 percent to KES 2.4 billion mostly comprising forex related income, fees and commission on trade finance products; in tandem with macroeconomic recovery that started last year.
Loan loss provisions decreased by 58.9 percent to KES 1 billion, indicating improved asset quality as the percentage of COVID-19 related loans on moratorium reduced to 2.7% of the gross loans from 47% restructured facilities.
BK Group Plc is adequately capitalized, with Total Capital to Risk Weighted Assets at 22.8 percent. The Group’s Total Assets increased 16.8 percent to KES 180 billion.
BK General Insurance registered a Profit of KES 168 million in the six months to June compared to KES 132 million registered in same period last year, representing a 28 percent profit growth.
The insurance firm’s Gross Premium increased 21 percent to KES 564 million from KES 468 million in the same period last year.
BK TecHouse registered a sales revenue of KES 66.4 million in the first half, compared to KES 56.2 million in the same period last year; representing an 18 percent growth.
BK Capital Ltd’s Net Operating Income rose to KES 44.2 million in the half year period; a 54 percent growth from the first half of 2021; reflecting increased trading on the Rwanda Stock Exchange and sustainable growth in the fund management assets.
“We recorded great results from all our subsidiaries; I am happy with what the Group’s management team has done in the first half of 2022. We remain focused on delivering higher value for our shareholders and plan to report even better numbers the second half of 2022,” said BéataHabyarimana, BK Group Plc Chief Executive Officer.