Bank of Kigali increases dividends as profit exceeds Sh7 billion

The net profit of Bank of Kigali (BK Group) increased by 15.1 percent to Rwf59.7 billion (Sh7.1 billion) for the fiscal year ended December 2022, prompting the board to increase dividend payout.

The bank, which is listed on the Nairobi and Rwanda stock exchanges, reported an increase in earnings of Rwf51.9 billion (Sh6.2 billion) due to a 14.5 percent increase in loan book to Sh135 billion.

The lender has proposed a dividend of Rwf32.5 (Sh3.87) per share, which amounts to approximately Sh3.45 billion, or half of the group’s after-tax profit.

The most recent dividend is a raise from the Rwf28.7 (Sh3.42) paid for each ordinary share in the previous fiscal year.

According to BK Group CEO Béata Habyarimana, the lender’s subsidiaries recorded solid results throughout the year, which helped increase the bottom line.

“We remain committed to delivering higher value for our shareholders and investors and are confident that we will continue to achieve even better results in the year 2023,” said Ms Habyarimana.

Due to increased lending, BK Group’s net interest income grew to Rwf137 billion from Rwf136 billion; non-interest income also improved by 22.8 percent to Rwf26.3 billion (Sh5.3 billion), which helped to increase the company’s bottom line.

Marc Holtzman, the group chairman, stated that the asset quality has improved, with the ratio of non-performing loans (NPLs) falling to 2.6% from 5.3% in 2021.

In what has been yet another strong year for banks, BK Group increases dividends in line with other Nairobi Stock Exchange-listed companies.

Equity, KCB, Co-operative Bank, NCBA, DTB, Stanbic Bank of Kenya, Absa Kenya, Standard Chartered Bank of Kenya, and I&M are among the nine tier 1 institutions. As profits increased, they increased their dividend payout by 22% to Sh63.07 billion from Sh51.8 billion.