Bank of Kigali(BK) Group Plc, listed on the Nairobi Securities Exchange(NSE), recorded a Net profit of $ 51.2 Million or Rwandan Franc(FRw) 51.9 Billion in 2021 from $ 39.3 Million in 2020, an increase of 35%.
The lenderâ€™s Total interest income rose by 20.8% y-o-y to FRw (Rwanda Franc) 136.3 Billion, while the lenderâ€™s loan book increased in size by 16.2% to FRw 990.3 Billion.
BK Groupâ€™s Total interest expenses grew by 23.3% y-o-y to FRw 40.3billion due to corresponding growth in customer deposits which grew to FRw 974.5 Billion.
Overall, the Net Interest margin increased to 10.9% from 10.7% in 2020.
Non-interest income totalled FRw 37.9 billion, an increase of 41.4% y-o-y, driven by a rise in trade volume and economic activities.
Total operating income rose by 24.8% to FRw 174.2 billion, while total operating expenses increased by 39.2% to FRw 63.2 billion. Loan loss provision rose to FRw 37.7 billion.
Asset quality continues to improve with NPLs ratio and cost of risk at 5.3% and 3.4% compared to 6.7% and 4.5%, respectively, in 2020.
The percentage of COVID-19 related loans on moratorium was reduced to 1.7% of the gross loans from 43% restructured facilities.
The Groupâ€™s cost to income ratio stood at 36.3% from 32.5% in 2020 due to increased Opex for project consultancies and network connectivity.
As of December 31st, 2021, BK Group Plc is adequately capitalized with Total Capital to Risk-Weighted Assets at 21.1%.
The Groupâ€™s Total Assets stood at FRw 1.6 trillion; up 22.0% y-o-y, supported by strong liquidity from customer deposits growth.
Net Loans/Total Assets ratio stood at 62.3%, down from 65.3.5% in the same period last year.
The dividend payable balance was FRw 26.9 billion, as per the approved pay-out ratio of 50%.
Shareholdersâ€™ Equity increased to FRw 285.3 billion, up 10.0% y-o-y. Liquid Assets divided by Total Deposits increased to 44.5% as of December 31st, 2021, from 41.8% in December 2020.
The Groupâ€™s key profitability ratios- ROAA and ROAE improved to 3.6% and 19.1%, respectively, from 3% and 16% in 2020.