Rwanda’s commercial bank BK Group reported a 3.7 percent profit growth in the first quarter ended March, helped by higher interest income.
The company, which is cross-listed on the Nairobi Securities Exchange (NSE) and the Rwanda Stock Exchange, recorded a net profit equivalent of Sh2.4 billion during the review period.
This was up from Sh2.3 billion a year earlier. The company’s functional currency is the Rwandan franc (Rwf), but it also reports its financial performance in US dollars and Kenya shillings because of its ownership by investors from different countries.
The lender’s net profit growth was higher at 6.9 percent in Rwandan francs.
“BK Group delivered a solid revenue performance in the first quarter of 2026, with total operating income reaching Rwf72.3 billion, up 13.8 percent year-on-year,” the company said in a statement.
“Net interest income was the primary driver, rising 15.2 percent to Rwf57.8 billion as interest income grew 8.4 percent to Rwf71.4 billion and interest expense declined 13.3 percent to Rwf13.6 billion.”
Total recurring operating costs increased 22.6 percent to Rwf26.4 billion, outpacing operating income growth and contributing to the muted profit growth.
BK Group said the rise in operating costs was concentrated in administration and general expenses, which rose to Rwf11.2 billion from Rwf7.3 billion, while personnel costs increased 3.7 percent to Rwf11.8 billion.
“The cost-to-income ratio nonetheless improved from 41.6 percent in the fourth quarter of 2025. Management continues to monitor administrative cost growth as it invests in the group’s operating platform,” the company said.
Sector peers
Net loans and advances increased 7.3 percent to Rwf1.66 trillion. BK Group, which is majority-owned by the Rwandan government, has a diversified business that includes its flagship subsidiary, Bank of Kigali.
The group also offers general insurance, asset management and software services.
The performance of BK Group leaves Absa Bank Kenya and Standard Chartered Bank Kenya as the only NSE-listed lenders to post lower earnings in the first quarter.
Absa’s net income declined 13.8 percent to Sh5.3 billion as falling interest rates and reduced lending to customers weighed on interest income.
Other rival lenders, including Equity Group, NCBA Group and Co-operative Bank of Kenya, reported higher earnings, supported by a mix of deeper cuts in interest expenses and higher income from lending and transactions.
