Financial institution of Kigali (BK Group) web revenue for the 12 months ended December 2022 rose by a 15.1 p.c to Rwf59.7 billion (Sh7.1 billion), prompting the board to extend dividend payout.
The financial institution, which is listed on each the Nairobi and Rwanda inventory markets, reported the rise in earnings from Rwf51.9 billion (Sh6.2 billion) on the again of a 14.5 p.c progress within the mortgage e book to Sh135 billion.
The lender has advisable a dividend of Rwf32.5 (Sh3.87), amounting to about Sh3.45 billion or half of the group’s after-tax revenue.
The most recent dividend is an increase from Rwf28.7 (Sh3.42) that was paid for every strange share within the earlier monetary 12 months.
BK Group CEO Béata Habyarimana stated the lender’s subsidiaries reported robust performances throughout the 12 months, serving to enhance the bottom-line.
“We stay dedicated to delivering greater worth for our shareholders and buyers and are assured that we are going to proceed to attain even higher ends in the 12 months 2023,” stated Ms Habyarimana.
BK Group’s web curiosity earnings elevated to Rwf137 billion from Rwf136 billion on the again of elevated lending whereas non-interest earnings rose 22.8 p.c to Rwf26.3 billion (Sh5.3 billion), serving to to spice up the bottom-line.
The Group chairman Marc Holtzman famous the asset high quality recorded an enchancment with non-performing loans (NPLs) ratio dropping to 2.6 p.c in comparison with 5.3 p.c in 2021.
“The corporate’s success could be attributed to Rwanda’s publish Covid-19 restoration and the group’s concentrate on bettering asset high quality and profitability. We’re happy to see double-digit progress throughout all key efficiency metrics,” stated Mr Holtzman.
BK Group joins different Nairobi Securities Alternate-listed companies in rising dividends in what has been one other good 12 months for banks.
The 9 tier 1 lenders—Fairness, KCB, Co-operative Financial institution, NCBA, DTB, Stanbic Financial institution of Kenya, Absa Kenya, Commonplace Chartered Financial institution of Kenya and I&M— raised their dividend payout by 22 p.c to Sh63.07 billion from Sh51.8 billion as income soared.