BK GROUP (BKG) Q3 2024 earnings summary

Executive summary

• Net income for 9M 2024 rose 26.1% year-over-year to RWF 69.7 billion, with ROAA at 4.1% and ROAE at 23.6% as of September 30, 2024.

• Total assets increased 14.6% YTD to RWF 2,428.9 billion, and net loans and advances grew 15.4% YTD to RWF 1,436 billion.

• Client balances and deposits rose 12.2% YTD to RWF 1,542.4 billion, and shareholders' equity increased 14.6% YTD.

• Performance was driven by economic recovery, asset quality improvements, and growth across all subsidiaries.

• Diversified business model spans banking, insurance, capital markets, technology, and social impact initiatives.

Financial highlights

• Total operating income for 9M 2024 was RWF 190.5 billion, up 18.3% year-over-year.

• Net interest income increased 17.1% year-over-year to RWF 140.8 billion, while non-interest income grew 21.7% to RWF 49.7 billion.

• Cost-to-income ratio improved to 37.9% (Q3-23: 42.0%); return on equity at 23.6% (FY 2023: 21.8%).

• Profit after tax was RWF 69.7Bn (+26.1% YoY); EPS rose to RWF 99.8 from RWF 79.2 in Q3-23.

• Loan loss provisions increased 51.9% year-over-year to RWF 23.2 billion, reflecting loan book growth and new IFRS 9 assumptions.

Outlook and guidance

• Rwandan economy remains resilient with 9.8% GDP growth in Q2 2024; inflation projected at 5.0% for FY 2024.

• Core inflation expected to decrease by Q2 2025; energy inflation to rise in line with global oil prices.

• Exchange rate depreciation slowed to 3.7% YTD, compared to 18% in 2023.

• Recovery efforts and reductions in Stage 2 exposures are expected to further improve asset quality.

• The group remains committed to delivering long-term shareholder value and sustaining growth.