BK in 35% half year profits
Bank of Kigali (BK) has announced its annual half profits posting a more than 30 percent profit as compared to last year’s results.
Bank of Kigali also the first bank to be listed on the stock exchange is proving to be a hit for its investors with its increased rise in net income.
The bank’s net income from banking activities increased to Rwf30.6 billion from Rwf25.2 billion during the period. Its loan book also expanded, with equipment loans taking the largest share, increasing from Rwf54.6 billion last year to Rwf81.4 billion by end of June.
Mortgage loans dropped to Rwf44.1 billion, from Rwf49.1 billion last year, indicating a Rwf5 billion decline.
Treasury and consumer loans also declined during the period from Rwf43 billion and Rwf33.6 billion last year to Rwf39.7 billion and Rwf32.2 billion this year respectively.
However, overdrawn accounts grew to Rwf9.4 billion from Rwf8.98 billion, while non-performing loans increased to Rwf3.3 billion from Rwf1.86 billion last year.
The bank’s chairman James Gatera notes the bank’s increased market base is down to its customer friendly products.
“We were the first bank to introduce is a core banking based mobile branchless banking solution aimed at reaching the underserved Rwandans with the goal of providing relevant financial services, ” Dr. Gatera noted.
The product in question is ‘BK Yacu’.
With the increased non performing loans experts cited the acquisition of liable products like cars for the cause.
“A car for personal use is not an investment but feather a liability in reality,” says George Njoroge an economist who further adds that most newly employed Rwandans are the ones most affected by these non- perfuming loans.