BK GROUP (BKG) Q2 2024 earnings summary

Executive summary

• Net income for 1H 2024 reached FRW 47.8 billion, up 29.5% year-over-year, driven by growth in loans, deposits, and non-funded income.

• BK Group maintained market leadership in Rwanda, holding the top position in assets, loans, deposits, and equity market share above 30%.

• Total assets increased 10.1% year-to-date to FRW 2,333.2 billion, supported by growth in net loans and client deposits.

• Strategic focus remains on innovation, digital transformation, and customer-centricity across all subsidiaries.

Financial highlights

• Total operating income rose 18.9% year-over-year to FRW 126.6 billion; net interest income increased up to 16.9%.

• Net loans and advances grew 14% year-to-date to FRW 1,418.6 billion; customer deposits increased 6.5% to FRW 1,463.7 billion.

• Non-funded income surged 24.5% year-over-year, supported by FX and loan-related fees.

• Insurance service revenues rose 10% year-over-year, with improved profitability and compliance with all prudential ratios.

• Cost-to-income ratio improved to 36.6% from 40.2% in 1H 2023.

Outlook and guidance

• Management targets for 2024 include loan growth above 18.3%, deposit growth above 23.6%, and net interest margin above 9.1%.

• Return on equity is targeted above 25.1%, with cost-to-income ratio below 40.7%.

• Asset quality expected to improve due to reduced Stage 2 exposure and enhanced recovery efforts.

• Headline inflation in Rwanda is projected to remain close to 5% in 2024–2025, supporting a stable operating environment.