IGIHE

Category: Business

  • BK named best bank in Rwanda for third consecutive year

    Global Finance, an international magazine with over 35 years of experience in financial reporting, attributed this recognition to the bank’s exceptional customer service, innovative products, and strong financial performance.

    The CEO of Bank of Kigali attributed the award to the bank’s commitment to excellence and its unwavering determination to provide customers with top-notch services.

    “We are honored to receive the Global Finance Award for the third consecutive time, and we are grateful to our customers, staff, and stakeholders for their continued support,” she noted.

    Dr. Karusisi also emphasized that the bank remains focused on driving financial inclusion and contributing to Rwanda’s economic growth and development.

    “We will continue to innovate and adapt to meet the evolving needs of our customers,” she reiterated.

    Bank of Kigali experienced several significant developments over the past year, which played a critical role in securing the award for the third consecutive year.

    These include the release of the new BK Mobile App, the acquisition of the BK Arena naming rights, the establishment of both the Mortgage Center and the SME Center, as well as the introduction of the IKAZE Feedback platform.

    In addition, the bank saw a 15.1 percent increase in net profit worth Rwf59.7 billion in 2022 from Rwf51.9 billion in 2021, mainly driven by the 25 percent increase in non-funded income.

    This achievement marks another cause for celebration at Bank of Kigali.

    BK has been named best bank in Rwanda for third consecutive year.

  • BPR Bank registers Rwf32 billion profit before tax in 2022

    The bank’s total operating income also increased by 16% to Rwf72 billion compared to Rwf61 billion in 2021, due to revenue growth in interest income and containment of interest expense. The bank’s loan book grew by 27%, reaching Rwf456 billion in 2022, driven by investments made in manufacturing, trade, and construction.

    BPR Bank’s Managing Director, Patience Mutesi, attributed the performance to the consolidation of gains from the merger of the former KCB Rwanda and Banque Populaire du Rwanda, as well as providing customer-centric products and services while implementing technological advancements.

    The bank’s Chairman of the Board of Directors, George Rubagumya, noted that the results were achieved through sound financial management, the introduction of new products and services, and a keen focus on customer satisfaction metrics.

    BPR Bank has reiterated its commitment to offering quality services in public and private investments, payments, and savings for customers.

    BPR Bank headquarters.

  • I&M Bank Rwanda posts Rwf9.3 billion profit after tax in 2022

    Fees and commissions also saw a 20 percent increase year-on-year, attributed to the proper execution of revenue-generating strategic initiatives and digital transactions’ continued growth. Foreign exchange activities revenue also increased by 25 percent due to the increase in volume.

    Despite the increase in operating expenses to Rwf25.6 billion from Rwf20.7 billion, I&M Bank’s loan book grew by 4 percent, closing at Rwf231.7 billion, while customers and other financial institutions’ deposits closed at Rwf357.4 billion. The bank’s NPL ratio was well managed at 4.2 percent, resulting in a loan-to-deposit ratio of 63.2 percent.

    I&M Bank CEO Robin Bairstow attributed the bank’s success to the I&M Group’s ability to manage various economic challenges while leveraging digital capabilities to provide exceptional customer experiences. He emphasized the bank’s dedication to being a dependable and trusted financial partner for growth while navigating macroeconomic headwinds with resilience and soundness.

    I&M Bank’s good performance also earned it the Gender Equality Seal and the Best Bank in Rwanda award for the second year in a row by Capital Finance International (CFI). The bank plans to continue investing in technology to enhance its customer experience and improve operational efficiency.

    Based on the financial performance, the board recommended the payment of Rwf1.84 dividends per share, a 55 percent increase compared to the previous year.

    The bank’s commitment to creating long-term value for all stakeholders, including customers, shareholders, and the broader community, continues to be a top priority.

    I&M Bank Rwanda has posted Rwf9.3 billion profit after tax in 2022.

  • MTN Rwandacell records solid annual results for 2022 financial year

    These solid results were supported by a growth in voice, data and mobile financial services underpinned by good operational momentum. Our subscriber base grew by 381,000 subscribers to 6.8 million. The Active data user base grew 9% compared to the previous year, with 191,000 new active data customers added to the MTN customer base in 2022. This growth was driven by the addition of over 308,000 new smartphones to the network, increasing smartphone penetration by 3.4%.

    Speaking on these achievements, Mark Nkurunziza, MTN Rwanda Chief Finance Officer, highlighted “We are thrilled to announce these strong results for 2022. The renewal cost for our individual license in 2021 for Rwf 91 billion was amortised over 10 years, which impacted finance and amortization costs resulting in a 12.8% decrease in net earnings. Our Earnings Before Interest Tax Depreciation and Amortization (EBITDA) grew by 20.8% compared to the previous year, closing 2022 with an EBITDA margin of 48.3% that came in 0.6pp stronger than 2021. The margin improvement was primarily a result of strong revenue growth as well as a yearlong focus on expense efficiencies to contain operating expenditure growth.”

    Anchored on one of our Ambition 2025 pillars, to build the largest and most valuable platforms, our subsidiary Mobile Money Rwanda Limited (MMRL) recorded an increase in the active Mobile Money subscriber base to 4.3 million users from 3.7 million users with an exponential increase in MoMo Pay merchants to 141,222 from 47,678 active merchants in 2021. Additionally, Mobile money revenue continued its strong trajectory closing at 48.4% growth compared to 2021.

    “We are pleased to see that the adoption of our mobile money services by our customers and the drive from our partners, MoMoPay merchants, has translated into such strong results. This year, we are even more committed to introducing products and services that will propel financial inclusion across the nation, leaving no one behind,” commented Chantal Kagame, Mobile Money Rwanda Limited Chief Executive Officer.

    Mapula Bodibe, MTN Rwanda Chief Executive Officer expressed that “These results are a testament to the hard work and dedication of our employees and the continued support of our board of directors, and stakeholders as well as the continued loyalty of our customers. We would like to thank and appreciate all our customers and stakeholders without whom we wouldn’t have been recognized as the 2022 top performing MTN operation across the MTN Group footprint of countries in the MTN Group ‘Million Dollar Challenge’, announced a few weeks ago. Also noteworthy, Mobile Money Rwanda Limited emerged as the overall winner of the Build the Largest and Most Value Platforms: Fintech award, being the best performing Fintech operation across the MTN Group footprint.

    In 2022, we also continued our focus on investments in a sustainable future through our strategic priority Environmental, Social and Governance (“ESG”) programme, aligned to the MTN Group commitment to achieve zero net carbon emissions by the end of 2040. MTN Rwanda launched a pilot grid-connected solar system at our data centre as a proof-of-concept project, under the localised Project Zero umbrella, for which we foresee expansion in the coming years.

    Building on our commitment to “Lead Digital Solutions for Rwanda’s Progress”, MTN Rwanda in partnership with our telecom tower provider IHS Rwanda Ltd donated laptops and subsidized data to schools for the second year in a row as part of the ongoing nationwide school digitization programme.

    “This year, we are excited to be celebrating twenty-five years of operation in Rwanda. Our journey in this nation of a thousand hills has been one of growth and innovation. We are looking forward to celebrating this milestone throughout the year. There’s a lot in store for our customers under the theme “Tubitayeho” including a number of events and giveaways, appreciating all our stakeholders and partners for their continued support and trust over the years,” added Bodibe.

    Looking ahead, we are at the mid-way point of the execution of the MTN Group Ambition 2025 strategy and the beginning of the implementation of Rwanda’s new broadband policy, which presents even more exciting growth prospects for MTN Rwanda. We are focused on delivering on the policy expectations which are in line with MTN’s ambition to lead digital solutions for Rwanda’s progress.

    “We look forward to building on the success we achieved in 2022. The Company is well-positioned for future growth, with plans to introduce new products and services, underpinned by a continued focus on improved network and customer experience,” concluded Bodibe.

    About MTN Rwandacell Plc

    MTN Rwandacell Plc (MTN Rwanda) is the market leader in mobile telecommunications in Rwanda. Since 1998, it has continuously invested in expanding and modernising its network.

    MTN Rwanda offers various services to subscribers, including innovative propositions such as personalised voice and data offers with MTN Irekure. The company is also the front runner in mobile financial services in Rwanda with Mobile Money, MoMoPay and MoKash Loans and Savings.

    MTN Rwanda Headquarters.

  • Rwandan Murorunkwere establishes Trust Company Service Provider

    A trust company is a legal entity that acts as a fiduciary, agent, or trustee on behalf of a person or business for the purpose of administration, management, and the eventual transfer of assets to a beneficial party.

    According to a statement released by the company’s management, MLCS has been added to the list of first approved Rwandan owned Trust and Company Service Providers in accordance to the regulation N° 52/2022 of 01/09/2022 of the National Bank of Rwanda governing Trust Company Service Providers.

    The company got the approval on 6th February 2023. Apart from the licensing, MLCS has so far joined different associations including the Kigali International Financial center’s Club; European Business Chamber of Rwanda and the American Chamber of Rwanda.

    MLCS operates in the financial non-banking sector targeting corporate and private clients who require a fast and professional range of corporate, fund and fiduciary services by providing administrative, accounting, taxation, legal and compliance services.

    It is headed by Headed by its Founder and Managing Director, Ms. Lydie Murorunkwere and a team of experienced professionals who combine the latest technologies and data analytics with their experience in law, finance, accounting, taxation, human resources and business to ensure that investor’s organizations will run smoothly at all times.

    Lydie Murorunkwere is a strategic senior executive leader with more than 20 years of experience in senior roles with a focus on business development for organizational success.

    She has built a strong institutional relationship while working in the Rwandan banking system at the Commecial Bank of Rwanda (I&M) and BPR (Atlas Mara), proving an ability to resolve multiple and complex issues related to sales, legal, financial and operational administration.

    Alongside setting up and incorporation of companies and structures, MLCS will also share expertise in the areas of Corporate Secretarial and Administrative services; Corporate governance, Legal and compliance Assistance, Taxation and Accounting; Private Notary services, intellectual property, Assets Management and Administration for real Estate as well as Venture Capital and Private Equity Services.

    In order to support the Rwandan government efforts to establish a strong financial center in Rwanda, attracting investment funds and innovative financial services, MLCS is proposing a suite of tailored trainings for corporate, public institutions and learning partners.

    The trainings will be provided in the specific sectors of Corporate and Investment Law; Risk Management, Compliance and Regulation; Marketing and Customer Care; Entrepreneurship and data protection; Accountancy and taxation; Climate Change and Renewable Energy Finance; Investment analysis, Project finance and Capital Markets.

    Lydie Murorunkwere id the Founder and Managing Director of ML Corporate Services Ltd.

  • Francine Munyaneza reveals how she intends to spend ABH competition prize share, tips entrepreneurs on key to success

    The ABH Prize Competition held for the fourth consecutive time this year, is a philanthropic initiative sponsored by the Jack Ma Foundation and Alibaba Philanthropy.

    The 10 entrepreneurs were selected from over 21,000 applications across all 54 African nations after six months’ rigorous evaluation by over 230 judges.

    They hail from eight African countries including Cameron, Egypt, Ethiopia, Ghana, Kenya, Rwanda, South Africa and Tanzania. Their start-ups have been drawn from a wide variety of industries including agriculture, consulting, energy, environmental protection, healthcare, information & communication technology (ICT), and retail.

    These outstanding entrepreneurs share a common trait of having a deep commitment to creating a positive impact on their communities, such as empowering disadvantaged groups, increasing access to digital commerce for businesses in Africa and leveraging technology to improve agricultural efficiency for small-holder farmers.

    All finalists won a share of the competition’s US$1.5 million grant. Elia Timotheo, Founder and CEO of East Africa Fruits Co. emerged the overall winner and walked away with US$300,000.

    Tesh Mbaabu, Co-Founder and CEO of Marketforce Technologies (Kenya) and Nadia Gamal El Din, Founder and CEO of Rahet Bally (Egypt) won the second and third place respectively and received a prize share of US$250,000 and US$150,000.

    Each of the finalists other than the top three received US$100,000 in prize funding, and an additional US$10,000 will be allocated to each of the top ten finalists for immersive training program(s) and community gathering activities.

    The remaining seven entrepreneurs include Cameroonian Flavien Kouatcha Simo, Managing Partner of Save Our Agriculture Sarl; Egyptian Amena Elsaie, Co-Founder of Helm Consulting; Ethiopian Amadou Daffe, CEO/Co-Founder of Gebeya Inc. Addis Ababa; Ghanaian Prince Agbata, Co-founder and CEO of Coliba Waste Management Services Limited; South African Shona Mcdonald, Founder and Executive Director of Shonaquip Social Enterprise; South African Elmarie Pereira, Chief Operations Executive, Co- Founder & Acting CEO of Memeza Shout (PTY) Ltd and Rwandan Francine Munyaneza, Founder of MUNYAX ECO.

    Rwanda has been participating in ABH each year since its inception in 2019 and has highly benefited as 4 entrepreneurs from Rwanda have so far emerged among top 10 winners for the year 2019, 2021 and 2022 respectively. Overall, to date, Rwanda has won a total grant of over US$385,000 (equivalent to over 406 million Rwandan Francs).

    IGIHE has sat with Rwandan Munyaneza to tell us more about what this continent-wide competition has been like, how she made it to the top, her innovation which is solving a major continental problem in the energy sector and what her win means to her business.

    She also shared the key lessons Rwandan and African entrepreneurs can learn from the ABH initiative and how she plans to spend the grant.

    Excerpts:

    1. Kindly tell us briefly about your project?

    Francine Munyaneza: My projects are diverse and I can’t talk about them without mentioning MUNYAX ECO because this is where all are being implemented!

    So, MUNYAX ECO is a promising company specialized in solar energy where we provide affordable green energy solutions such us: PV systems, SWH, SSL, SHS, Solar pumping, Solar cold chains (freezers & cold room), plus energy consultancy services (like energy auditing) while fostering women empowerment and leadership.

    Our slogan is: Save Energy, Save Money, Save the Planet!

    2. Which lessons have you learnt from participation in the Africa’s Business Heroes Prize Competition?

    The first lesson I have learnt from the Africa’s Business Heroes prize competition is that technology holds the future. Whatever solution you are providing, for you to be competitive, your project needs to be very scalable. It has to be adapted to this century’s dynamicity and lifestyle.

    Another lesson is that African entrepreneurs are doing great works in their respective fields, some of them are widely known and others only locally known due to limited financial means, but still the brains are sharp with strong desire to contribute to the overall development of our continent.

    3. To what efforts do you attribute the selection among top ten winners of the 2022 Africa’s Business Heroes Prize Competition?

    • To personal determination and desire to contribute on the development of my country & Africa in general,
    • To the clear vision; business model; and impact of the company,
    • To Team work spirit (strong, experienced, enthusiast, and dedicated team members _ board members, employees, and business partners)
    • The correct and sincere explanation of my business during preliminary selections (pitches)_presentation skills,

    4. Your company targets to solve Rwanda’s energy challenges in rural and urban areas by providing solar equipment made and tested in Africa. What are your long-term goals and how far have you gone with attaining the same?

    My long-term goals to this matter lay within other big and exciting projects in pipeline!

    • MUNYAX ECO is planning to extend its activities in Africa.
    • I have an ambitious project of starting a manufacturing firm starting with Solar Water Heater (SWH) Systems. This project is going to include the existing recycling department (we currently make furniture and building materials from old/defected products). This will reduce importation expenses (shipment & clearance cost, waiting time, other risks) to enhance the affordability of our products.
    • The Second project is about opening a gender sensitive training centre. This project will train skillful employees to the previous one!

    Where we are on this point: There is no time MUNYAX Eco has been operating without interns/apprentice. We always offer to the youth (especially young women) apprenticeships and internships opportunities to sharpen their practical skills.

    5. What has been the impact of your project to the community, particularly, Rwandans?

    I might have mentioned some of the impacts briefly, let me elaborate!

    • Munyax eco is contributing to the achievement of most of the Sustainable Development Goals (SDGs).
    • More households (Rwandan) are getting access to clean and affordable energy solutions _SDG 7,
    • Job creation (income generating of course to reduce poverty) and most of the employees are Rwandans part of the community _ I must highlight that for new job or field activities which do not require special skills, we always employ locals (many cases on cold room and SHS), _SDG 1 and 8,
    • Gender inclusion though women empowerment (those are Rwandan women, who are basic foundation of the community) _SDG 5
    • Contribution in quality education (Munyax Eco has provided lighting and SWH to different schools (eg: Juru Primary school, Kibihekane TVET, St.Joseph Nyamirambo, etc _SDG 4
    • By providing PV system, SWH, and filtered drinking water to 2 health centres (Gahanga and Gitarama), we contributed to both _SDG 3, most of the patients and employees at those health centres lives in nearby community.
    • Our solar pumping solution contribute to agriculture productivity to beat hunger when it’s done for irrigation _SDG 2, and contribute to the supply of safe drinking water where water is being pumped from wheel and filtered for consumption _SDG 6 (partenering also with Water Access’ kiosks in Rwanda).
    • Our partnership with Solaris Kit, IPRC and SOS Rwanda is also providing skills to young Rwandans as we already have 4 interns from both last institutions _SDG 17,
    • Reduced Co2 emission (5000 tons per yesr) by providing environmentally
    • friendly energy solutions which is a contribution to climate action _SDG 13.

    6. What can other entrepreneurs especially Rwandans learn from your project?

    • I would advise other Rwandan entrepreneurs to believe in themselves first.
    • Align your business with local and global agenda/policies,
    • Always remember why they started their ventures and let the purpose drive them,
    • Stay updated, information is the key!
    • Think out of the box, look beyond their current struggles, take risks worth taking.
    • You must have a qualified team & constantly give them opportunity to grow (eg: trainings)
    • Learn from others (advanced business advisors or fellow business owners),
    • Build partnerships that would add value or expand your business (In innovation, scalability or technology)

    7. How do you intend to spend the ABH prize share to make Munyax Eco more meaningful to communities surrounding your operations?

    The ABH prize share is mainly going to be used in cold chain technology, and we believe to become a success given the fact that we provide solar cold rooms and solar freezers on reasonable lease agreement.

    New cold rooms will create new job opportunities for locals during construction and operation later, local farmers will benefit by storing they production while waiting for buyers which reduce post-harvest losses.

    8. What message do you have for budding and existing entrepreneurs across Rwanda and in the region who have not yet participated in this competition?

    I would tell them that knocking on a door doesn’t cost anything but if you don’t do it, you may never get in!

    ABH is a big and powerful competition for African entrepreneurs. There is no condition about business stage; age limit; gender or any other thing. The most important thing is your business model, it’s scalability and impact.

    Please try your chance, follow ABH website to get updates regarding next competitions.

    You never know how life-changing this competition can be, a break through window that lead you to an open platform where growth opportunities are shared amongst those who manage to make it to the top 10 finals, living alone the prize.

    It’s possible. If I did it, If Munyax did it, you can do it too!

    Francine Munyaneza is a Rwandan entrepreneur who recently emerged among the top ten winners of the Africa’s Business Heroes Competition 2022.Francine Munyaneza (5th from right) in a group photo of the top 10 finalists and the ABH team in Johannesburg, South Africa at ABH Grand Finale event.

  • BK Group Plc registers Rwf43.5 billion net income in first nine months of 2022

    BK Group Plc is the mother company of four subsidiaries including Bank of Kigali, BK General Insurance, BK TechHouse and BK Capital Ltd.

    As per released figures, the lender recorded Rwf134.8 billion total operating income and Rwf43.5 billion after-tax profit in the first nine months.

    As for the third quarter, the group registered Rwf15.2 billion after-tax profit.

    Commenting on the performance, the CEO of BK Group Plc, Béata Habyarimana said: “BK Group Plc recorded strong results in Q3 and first nine months of 2022; reporting a net income of Rwf43.5 billion. We are happy to see improvement in asset quality despite a turbulent macroeconomic environment. We remain Rwanda’s leading financial group with over 30% market share on all key metrics teams remain committed to delivering great results and we are confident and optimistic that we will continue to meet shareholder’s expectations.”

    Subsidiaries’ performance in the first nine months

    Bank of Kigali Plc

    As at September 2022, the bank served 439,690 Retail customers and over 21,561 corporate clients, expanded the Agency Banking Network to 4,086 agents and processed over 1.8 million transactions worth Rwf357.0 billion.

    The lender has 68 branches, 13 outlets, 9 mobivans; 97 ATMs and 3,197 POS terminals that accept most international cards including VISA and MasterCard.

    Among others, retail clients’ balances and deposits reached Rwf309.3 billion as at September 30th, 2022 while business banking clients’ balances and deposits were Rwf818.0 billion as at September 30th, 2022.

    BK Quick now has 125,112 registered customers and has disbursed over Rwf1.8 billion as at September 30th, 2022 while IKOFI wallet has registered over 1,853 agro-dealers/agents and over 264,082 registered farmers.

    BK General Insurance

    As one of BK Group’s subsidiaries, BK Insurance registered a profit of Rwf2.1 billion in quarter three compared to Rwf1.8 billion registered in same period last year, representing 15% growth in profitability.

    Gross Premium decreased from Rwf10.4 billion in the third quarter of 2021 to Rwf8.9 billion in 2022 reflecting a growth of 15%.

    Underwriting profit grew from Rwf1.7 billion to Rwf1.9 billion year-on-year, which represents a 12% growth.

    Total assets also increased by 9% y-o-y from Rwf21.7 billion to Rwf23.5 billion.

    BK TecHouse

    As for the performance of BK TecHouse, sales revenue grew from Rwf735.7 million to Rwf867.2 million; representing an 18% increase while Net Operating Income reached Rwf1.1 billion; representing a 37% growth.

    BK Capital Ltd

    The company’s total revenues for the period stood at Rwf677.0 million. Assets under management grew by 128.3% YTD to Rwf2.4 billion; mainly due to improving product awareness, investment returns and consistent customer service.

    With RSE Market Share of 36.6%; the subsidiary sustained market share growth attributed to deepening client relationships and growth in related businesses.

    BK Group Plc has registered Rwf43.5 billion net income in the first nine months of 2022.

  • I&M Bank Rwanda Plc nets Rwf6.6 billion profit in third quarter

    According to the released financial statement, the lender’s profit reached Rwf10.2 billion , translating into an increase by 22% as at 30th September 2022 from Rwf8.3 billion of the same period last year.

    Generally, the bank reported Rwf30.5 billion in net revenue before impairment provisions, up by 25 per cent year-on-year, supported by 20 per cent growth in net interest income and a result of a better product mix as well as a build-out of Non funded Income up by 47 per cent year-on-year.

    In the period under review, operating expenses increased by 21 per cent year-on-year to Rwf17.5 billion, driven by investments in business growth and the continued deployment of technology to improve customer services and product lines.

    Hence, the cost-to-income ratio was 57.8 per cent and the profit after tax during the period was Rwf6.6 billion, an increase of 22 per cent from Rwf5.4 billion in the third quarter of 2021.

    The loan book and net advances to customers increased by 9 per cent to Rwf243 billion from Rwf222 billion at the end of 2021, whereas deposits held for customers and financial institutions increased by 7 per cent to Rwf350 billion from Rwf327 billion at the end of 2021, resulting in a loan-to-deposit ratio of 69.4 per cent.

    In line with the strategy to efficiently deploy its capital, the bank made total financial investments of Rwf119 billion, an increase of 30 per cent from Rwf91.5 billion reported at the end of December 2021.

    The Managing Director of I&M Bank, Robin Bairstow said that the lender registered steady growth in terms of customers in the third quarter of 2022 with an increase by 32% compared to last year.

    The bank also saw improved efficiency in transactions with significant growth in digital adoption where 74 per cent of all customer-initiated transactions in the bank now go through digital channels, consequently driving improvements in efficiency and customer satisfaction.

    I&M Bank Rwanda also rolled out ‘Ganza with I&M’ campaign where it supported clients’ projects, provided financial advisory services among others.

    It was meant to provide funding to Small and Medium Enterprises to mitigate effects of COVID-19.

    The bank also stayed close to clients in different parts of the country including Rubavu and Musanze to meet their needs.

    Bairstow also reiterated the bank’s commitment to continue walking with clients to cope with barriers related to the soaring inflation.

    I&M Bank (Rwanda) Plc began operation in Rwanda in 1963.

  • BK Group Plc registers Rwf28.3 billion net income in first half of 2022

    The group’s total assets also increased by 16.8% to Rwf1.6 trillion (US$ 1,602.2 million) compared to the same period last year.

    Net interest income grew to Rwf67.3 billion; with net interest margin decreasing to 9.5% from 10.9% in 2021. As at June 30th, 2022, BK Group Plc was adequately capitalized with Total Capital to Risk Weighted Assets at 22.8%.

    Among others, shareholders’ equity increased to Rwf 296.5 billion, up 9.4% while liquid Assets by Total Deposits stood at 45.4% as at June 30th, 2022 an increase from 41.6% in the same period last year.

    BK Group Plc is the mother company of four subsidiaries including Bank of Kigali, BK General Insurance, BK TechHouse and BK Capital Ltd.

    Subsidiaries’ performance

    Bank of Kigali Plc

    On the side of Bank of Kigali, net loans and advances increased by 10.6% to Rwf1.0 trillion (US$ 988.9 million), client balances and deposits increased by 19.6% to Rwf1.0 trillion (US$ 1,000.2 million)

    The bank also served 422,513 retail customers and 46,648 corporate clients; expanded the Agency Banking Network to 3,853 agents and processed over 1.8 million transactions worth Rwf314.4 million.

    As at 30th June 2022, the lender had 68 branches, 98 ATMs and 3,099 Point of Sales (POS) terminals that accepted most international cards including VISA and MasterCard.

    Among others; retail clients’ balances and deposits reached Rwf288.1 billion, corporate banking clients’ balances and deposits were Rwf 743.4 billion as June 30th, 2022.

    BK Quick now has over 20,066 new registered customers as at June 30th, 2022; and has disbursed over Rwf1.2 billion.

    BK’s IKOFI wallet has also registered over 1,852 agro-dealers/agents and over 264,066 registered farmers as at 30th June 2022.

    Commenting on the performance; Dr. Diane Karusisi, the Chief Executive Officer of Bank of Kigali Plc said: “Bank of Kigali Plc recorded good performance in Q2 & 1H 2022; our loan book has not grown in line with expectations but we are seeing improvement in asset quality reflecting post-COVID recovery which allows us to record a solid 1st half performance. We look forward to a greater second half of 2022.”

    BK General Insurance

    BK Insurance registered a profit of Rwf1.5 billion as at the first half of 2022 compared to Rwf1.2 billion registered in the same period last year, representing 28% growth in profitability.

    Gross premium increased to Rwf4.9 billion in the first half of 2022 from Rwf4.1 billion in same period last year; reflecting a 21% growth year-on-year.

    Total assets decreased by 28% y-o-y to Rwf21.4 billion in the first half of 2022.

    BK TecHouse

    BK TecHouse registered a sales revenue of Rwf574.4 million in the first half of 2022 compared to Rwf486.9 million in the same period last year; representing a 18% growth y-o-y.

    As at 30th June 2022, BK TecHouse registered over 2.8 million digital consumers where 2.5 million are from Agri-Tech; 301 thousand from Edu-Tech and 13 thousand from civil society and religious organizations.

    BK Capital Ltd

    BK Capital’s net operating income rose to 383 million in the first half of 2022; a 54% growth from the same period last year due to increased trading on the Rwanda Stock Exchange and sustainable growth in the fund management assets under management.

    The Assets under management (AUM) for the Fund management business have grown to Rwf26 billion in the first half of 2022; representing a 49.7% y-o-y growth mainly driven by net inflow in Aguka Unit Trust Fund, which continues to attract new investments based on its value proposition.

    Within the Brokerage Business, BK Capital increased bond and equity trading due to an overall RSE turnover growth of 157% and 250% y-o-y in bond and equity, respectively.

    Béata Habyarimana, the Chief Executive Officer of BK Group Plc has commended the four subsidiaries’ performance and expressed optimism for further improvements in the second half of this year.

    “Great results from all our subsidiaries; I am happy with what the Group’s management team has done in the first half of 2022. Our shareholders and investors will be happy with the sustainability of the Group’s results and financial position. Our Net income increased by a significant 24.5% y-o-y, while our total assets increased by 16.8% y-o-y. We remain focused on delivering higher value for our shareholders and plan to report even better numbers the second half of 2022,” she said.

    About BK Group Plc

    Established in 1966, BK Group Plc is a group company registered with Rwanda Development Board (RDB) and licensed under Law No. 08/99. Bank of Kigali is the largest bank in Rwanda by Total Assets, with 32.2% market share as at March 31st, 2022.

    The Group has a short-term credit rating of A1+ and a long-term rating of AA-, with a stable outlook, from Global Credit Rating (GCR). BK Group Plc is listed on the Rwanda Stock Exchange as well as the Nairobi Securities Exchange.

    BK Group Plc has registered Rwf28.3 billion net income in the first half of 2022.The Chief Executive Officer of BK Group Plc, Béata Habyarimana (in the middle) has commended the four subsidiaries’ performance.The CEO of Bank of Kigali, Dr. Diane Karusisi announcing the lender's performance for the first half of 2022.The Chief Finance Officer at BK Group Plc, Nathalie Mpaka speaking at a press conference to announce this year's first half results.

  • I&M Bank Rwanda reports Rwf 2.96 billion profit before tax in first quarter of 2022

    Commenting on the financial results, Mr. Robin Bairstow, the CEO of I&M Bank (Rwanda) PLC said: “We have delivered a strong first quarter, built on the solid momentum of 2021 and ongoing execution of our iMara 2.0 strategy. A review of the results shows positive performances across key financial metrics.”

    Financial performance review

    Q1-2022 Income statement highlights (vs Q1-2021)

    The strength of the bank’s performance was reflected in all profitability metrics, with return on equity (ROE) and return on asset (ROA) increasing to 12.14% and 1.61% respectively.

    • The Bank has reported RWF 9.3 Billion in net revenue (before impairment provisions), up by 15% year-on-year, driven significantly by an increase in net interest income of 14%.

    • Fees & Commission (net) were up by 4% year-on-year on the back of improved efficiencies and continued digital adoption. This has helped drive improvements in efficiency and customer satisfaction, with the Bank’s cost-to-income ratio capped at 59%. In the reported period, operating expenses increased by 9% year-on-year to RWF 5.5 Billion.

    • As a result, Profit After Tax (PAT) for the first quarter of 2022 was RWF 1.9 Billion, up by 17% year-on-year.

    Q1-2022 Balance sheet highlights (vs. Dec 2021)

    The Bank’s balance sheet remains robust, with the non-performing loan ratio standing at 3.45%, in line with Dec-2021 levels.

    • Loans & advances to customers (net) increased by 4% to RWF 231 Billion from RWF 222 Billion (December-2021). The growth was supported by new deals booked across all segments.

    • Total financial investments increased to RWF 112.2 Billion, up by 23% from RWF 91.5 Billion reported at the end of December 2021, in line with the Bank’s strategy to efficiently deploy capital.

    • Deposits held for customers and financial institutions were up by 10% to RWF 359 Billion (Rwf 327Billion- December 2021), resulting in a loan-to-deposit ratio of 64%. Borrowings position for the period were RWF 62 Billion. The liquidity coverage ratio was 528% as of the end of March 2022.

    • The Bank remains well capitalized with Tier I capital adequacy ratio of 17.54% and Tier II ratio of 20.16%.

    Financial & Business performance review

    Speaking on the Q1 2022 performance, Mr. Robin Bairstow – CEO of I&M Bank (Rwanda) Plc – said, “The bank’s strong performance was driven by an activity rebound in the economy, with growth noted both on our loans & advances and our deposit liabilities, which led to solid growth in net interest income and net fee income.

    In the reported period, our customer base was up by 24% year-on-year, with the highlight being our MSME segment with year-on-year customer growth of 70%.

    We remained anchored around delivering value and excellence in service to our customers. Our investments in state-of-art digital platforms delivered where we have noted a constant in digital services adoption with 75% of all customer-initiated transactions go through our digital channels.”

    He further added: “As business activities pick up across the country, we remain resolute to the core purpose of our brand “We are on your side” and in our commitment to support the country’s economic recovery.”

    ABOUT I&M BANK (RWANDA) PLC

    Incorporated in 1963, I&M Bank (Rwanda) Plc is the oldest Bank in Rwanda. It is today one of the leading players in the industry with a strong footprint across the country.

    I&M Bank Rwanda offers the full range of personal, business, institutional and corporate banking products throughout its locations. The Bank has been listed on the Rwanda Stock Exchange since March 2017.

    The Bank is also a subsidiary of I&M Group PLC, a leading regional financial services group in Eastern Africa with a presence in Kenya, Tanzania, and Uganda as well as a joint venture in Mauritius. I&M Group has a long history in banking and has established a wide network of correspondent banks across the globe and enjoys a strong relationship with leading international Development Financial Institutions.