BK Group Plc recorded Rwf56.4 billion in net income during the first half of 2026, an increase of 8.6 per cent from Rwf51.9 billion in the same period last year.
The growth was supported by stronger operating and non-interest income, which offset a 1.3 per cent decline in the Group’s loan book.
According to financial results for the six months ended June 30, BK Group’s total operating income rose by 15.6 per cent to Rwf152 billion.
BK Group Chief Executive Officer Uzziel Ndagijimana presented the results on September 2, explaining that the performance was driven by growth in net interest income and non-funded income, which is revenue generated from activities other than lending.
Net interest income increased by 14.8 per cent, from Rwf108.4 billion to Rwf124.5 billion.
Net non-interest income rose from Rwf23.1 billion to Rwf27.5 billion. This included Rwf12 billion in net fee and commission income and Rwf7.4 billion generated from foreign-exchange-related activities.
Bank Reduces Reliance on Large Loans
Bank of Kigali Chief Executive Officer Diane Karusisi said the 15.6 per cent growth in operating income, despite the smaller loan book, showed that the bank was capable of generating income from other areas of its balance sheet instead of depending entirely on lending.
Net loans and advances stood at Rwf1.66 trillion on June 30, compared with Rwf1.682 trillion during the corresponding period in 2025.
Meanwhile, client balances and deposits increased by 11.7 per cent from the beginning of the year to Rwf2.105 trillion.
Karusisi said some of the additional funding was invested in treasury bills and money-market placements, enabling the bank to continue earning interest income.
She attributed the decline in lending largely to the bank’s decision to reduce its exposure to large corporate borrowers and diversify its portfolio by extending more credit to small and medium-sized enterprises.
Karusisi said the bank preferred “smaller ticket sizes as opposed to large deals” because large loans expose it to greater losses when a borrower defaults.
Bank of Kigali expects its loan book to grow more strongly during the second half of 2026, partly through new digital lending products.
Non-Performing Loans Rise to 6.5%
BK Group’s asset quality weakened during the second quarter, with its non-performing loan ratio increasing from 4.8 per cent at the end of March to 6.5 per cent on June 30.
Karusisi said the increase was mainly caused by previous high-value loans involving a few companies in “one sector in particular, construction.”
She attributed the repayment difficulties to cash-flow challenges and said the bank hoped the affected credit would be cleared before the end of the year.
A large loan to a manufacturing company that had previously been classified as non-performing has since returned to performing status. Karusisi said that improvement would be reflected in the Group’s third-quarter results.
“Our NPL outlook remains below 5 per cent,” she said, referring to the threshold recommended by the National Bank of Rwanda.
BK Group reported an annualised cost-of-risk ratio of 2.1 per cent and a non-performing loan coverage ratio of 32.8 per cent.
Digital Lending and Electric-Vehicle Financing
BK Group plans to accelerate digital lending by introducing new end-to-end digital products in the coming months.
Karusisi said services such as salary advances and overdrafts would increasingly be processed digitally. Eligible SMEs, merchants, agents and individual customers will be able to apply for and receive funds more quickly.
The bank’s customer base increased by approximately 10 per cent between the beginning of the year and June. Karusisi said partnerships in sport, including the BK Pro League and Rayon Sports, contributed to the growth.
Bank of Kigali is also increasing its financing for electric vehicles as fuel prices remain high.
According to Karusisi, the bank developed an electric-vehicle financing portfolio valued at nearly Rwf5 billion “within a few months.”
Assets Reach Rwf2.98 Trillion
BK Group’s total assets increased by 2.9 per cent from the beginning of the year to Rwf2.984 trillion, while shareholders’ equity rose by 6.9 per cent to Rwf543.4 billion.
The Group also maintained strong liquidity. Its cash balances with banks stood at Rwf735.3 billion, while liquid assets represented 41.3 per cent of total assets.
Its core capital ratio stood at 21.1 per cent, while its total qualifying capital ratio was 22.3 per cent.
Ndagijimana said BK Group would seek to maintain the revenue growth recorded during the first half of the year by expanding recently introduced digital products and diversifying the market segments it serves.
The Group will place greater emphasis on retail banking, SMEs and agribusiness while also paying attention to payment costs.
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