BK GROUP (BKG) investor relations material

Executive summary

• Consolidated operating income grew 13.8% year-over-year to RWF 72.3 billion, with net income up 6.9% to RWF 26.9 billion, despite higher operating and tax costs and a more challenging credit environment.

• Capital position strengthened, supporting continued investment across banking, insurance, investment, and technology subsidiaries.

Financial highlights

• Net interest income rose 15.2% to RWF 57.8 billion, driven by 8.4% growth in interest income and a 13.3% decline in interest expense.

• Net non-interest income increased 8.8% to RWF 14.5 billion; net fee and commission income grew 26.7%, while FX-related income fell 34.8%.

• Total recurring operating costs rose 22.6% to RWF 26.4 billion, with administration and general expenses up 54.2%.

• Pre-provision operating profit increased 9.3% year-over-year to RWF 45.9 billion.

• Net impairment on loans and advances rose 8.2% to RWF 6.9 billion.

Outlook and guidance

• Management remains focused on disciplined growth, prudent risk management, and expanding Rwanda’s financial system, leveraging a strong balance sheet and diversified subsidiaries.