Banque de Kigali records 38.4 billion francs in profits, predicts COVID-19 recovery – KT PRESS
Bank of Kigali Group PLC registered a Rwf38.4 billion after-tax profit, an increase of 3.0% year-on-year; with Return on average assets and Equity reaching 3.3% and 16.0% respectively for the period ended December 31, 2020.
Nathalie Mpaka, the financial director of BK highlighted the financial report for the year ended in December 2020 in which she also declared that the The bank’s total assets also reached Frw 1,304.0 billion as of 31st December 2020, indicating steady growth for the bank.
Mpaka made the revelations on March 31st during a virtual event for announce the BK group Based on IFRS Financial results audited in Q4 and full year. The report also said that total interest income grew 19% to Rwf 112.8 billion while the net loan portfolio increased 25% to Rwf 851.1 billion year-on-year (year-on-year). ).
BK’s interest rose to 54% year-on-year to Rwf 32.7 billion, in line with the growth in customer deposits to Rwf 790.8 billion, although the overall interest margin fell by 10 , 7% compared to 11% in 2019.
Mpaka also showed that despite COVID-19, non-interest income increased 2.3% year-on-year to Rwandan francs 26.8 billion, although loan loss provisions increased by 82, 7% to 39.3 billion francs and non-performing loans increased to 71.3 billion francs from 45.6 billion francs in 2019.
Commenting on the performance, Dr. Diane Karusisi, CEO of Bank of Kigali, said that with the resumption of business activity, the group hopes to take advantage of the opportunities offered by the economic recovery.
She noted that like other players, they have suffered the effects of the foreclosure and other measures to curb the spread of the virus, including increased credit risk in their banking operations, affecting the cost of risk. which climbed to 4.5%.
“We have managed operating costs with strict discipline, and our insurance, investment banking and technology activities have grown healthy, offering the diversification essential to the Group’s revenues,” she said. declared.
To date, the Rwandan government has deployed a fund of 350 billion Rwandan francs with the intention of starting to support businesses affected by COVID-19 – which include banks, hotels and hospitality services, construction , education, industry, among others.
Dr Karusisi said that in conjunction with government-led economic stimulus efforts, the Bank of Kigali will also be up to the task to ensure it remains relevant in providing financial support to its clients.
“There are many ways to finance these (affected businesses) to recover by refinancing the loans at a national rate, but we are ready to provide our clients with more facilities to help them recover from the crisis.”
Dr Karususi said it was evident there was a slow recovery in business, but said the bank would be there to support them.