bank of kigali announces q1 2011 results

8/3/2019 Bank of Kigali Announces Q1 2011 Results

http://slidepdf.com/reader/full/bank-of-kigali-announces-q1-2011-results 1/8

Bank of Kigali Limited

Your trusted partner in wealth creation

Kigali, 6 June 2011

Q1 2011, Q4 2010 and Q1 2010 numbers in this press release are audited interim numbers.

About Bank of Kigali

Established in 1966, Bank of Kigali is the largest bank in Rwanda by total assets, with a 28.2% market share as of 31 March 2011. The bank has 33 branches in Rwanda and provides

commercial banking services to over 56,000 individuals and over 6,000 legal entities.

For further information, please visit www.bk.rw or contact:

Frances Ihogoza

Head of Corporate Affairs/Company Secretary

Tel: +250 252 593 100 or +250 252 593 200

Fax: +250 252 575 504 or +250 252 573 461

Email: [email protected]

SWIFT: BKIGRWRW

R.C. A 019 Kigali TIN n° 10.000.3458

B.P. 175 - KIGALI Parcelle 6112, Avenue de la Paix – Kigali (Rwanda)

600.1 RwF/US$ Period End Exchange rate as at 31 March 2011

594.4 RwF/US$ Period End Exchange Rate as at 31 December 2010

574.4 RwF/US$ Period End Exchange Rate as at 31 March 2010

Bank of Kigali Announces Q1 2011 Audited Results

Q1 2011 Change

Millions, unless otherwise noted US$ RwF Q-o-Q Y-o-Y

Total Operating Income (Revenue) 10.6 6,375 3.2% 38.7%

Total Recurring Operating Costs 4.3 2,588 -13.2% 27.0%

Profit Before Provisions 6.3 3,787 18.6% 48.1%

Net Provision Expense (0.8) (463) 54.8% -61.5%

Net Income (Loss) 3.2 1,915 -9.1% 125.4%

2010 ChangeUS$ RwF Y-o-Y

Total Operating Income (Revenue) 35.5 21,133 32.1%

Total Recurring Operating Costs 17.1 10,193 56.1%

Profit Before Provisions 18.4 10,940 15.5%

Net Provision Expense (3.0) (1,802) 20.1%

Net Income (Loss) 10.4 6,179 16.9%

As at 31 March 2011 Change

US$ RwF Q-o-Q Y-o-Y

Total Assets 351.8 211,123 6.8% 34.9%

Net Loans 174.8 104,902 3.5% 24.1%Client Deposits 246.1 147,666 8.8% 29.8%

Total Liabilities 297.2 178,338 7.6% 30.1%

Shareholders' Equity 54.6 32,785 2.9% 69.1%

As at 31 March 2011 As at 31 March 2010

Net Loans/Total Assets 49.7% 54.0%

Net Loans/Client Deposits 71.0% 74.3%

Q1 2011 Q1 2010

ROAA 3.7% 2.2%

ROAE 23.7% 17.9%





Kigali, 6 June 2011

2

Bank of Kigali (the “Bank”), the leading bank in Rwanda, announced today its non-IFRS results, reporting Net Income

of RwF 1,915 million (US$3.2 million) in Q1 2011, down 9.1% q-o-q and up 125.4% y-o-y.

Q1 2011 Financial Highlights

• Total Assets grew by 6.8% q-o-q and 34.9% y-o-y to RwF 211,123 million as at 31 March 2011

Total Assets Growth YTD 2011 2010

Bank of Kigali 6.8% 30.1%

The Rwandan Banking Sector 3.8% 26.1%

• Net Loans grew by 3.5% q-o-q and 24.1% y-o-y to RwF 104,902 million as at 31 March 2011

Net Loan Book Growth YTD 2011 2010



• Client Deposits grew by 8.8% q-o-q and 29.8% y-o-y to RwF 147,666 million as at 31 March 2011

Client Deposits Growth YTD 2011 2010



Bank of Kigali Growth vs. Rwandan Banking Sector Growth in 2010 and Q1 2011

30.1%31.5%

24.2%26.1%

13.1%

27.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Total Assets Net Loans Client Deposits

Bank Of Kigali Growth In 2010 Rwandan Banking Sector Growth In 2010

6.8%

3.5%

8.8%

3.8%

9.5%

3.1%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%


Bank Of Kigali Growth In Q1 2011 Rwandan Banking Sector Growth In Q1 2011

Market Share Dynamics

26.4% 26.8%25.7%

27.4%

31.5%

25.9%

28.2%29.8%

27.4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%


2009 2010 Q1 2011





Kigali, 6 June 2011

3

Net Interest Income equalled RwF 3,627 million in Q1 2011, down 4.1% q-o-q and up 25.3% y-o-y. Net Fee &

Commission Income amounted to RwF 779 million in Q1 2011, down 0.7% q-o-q and up 69.5% y-o-y. Total Operating

Income (Revenue) reached RwF 6,375 million in Q1 2011, up 3.2% q-o-q and up 38.7% y-o-y. Total RecurringOperating Costs decreased by 13.2% q-o-q and grew by 27.0% y-o-y to RwF 2,588 in Q1 2011. Cost/Income ratio

reached 48.2% in Q1 2011 as compared to 46.8% in Q1 2010.

Annualised ROAA reached 3.7% in Q1 2011, whereas annualised ROAE reached 23.7% in Q1 2011.

Total Assets grew by 6.8% q-o-q and 34.9% y-o-y, reaching RwF 211,123 million as at 31 March 2011. Net Loans grew

by 3.5% q-o-q and 24.1% y-o-y, reaching RwF 104,902 million as at 31 March 2011. The relatively low q-o-q Net Loan

Book growth rate was due to repayment of a large facility in order to comply with the single obligor requirement and

the booking of general provisions of RwF 1,000 million. Client Deposits amounted to RwF 147,666 million, up 8.8% q-

o-q and 29.8% y-o-y. Net Loans/Total Assets ratio stood at 49.7% as at 31 March 2011 vs. 54.0% as at 31 March 2010.

Net Loans/Client Deposits ratio reached 71.0% as at 31 March 2011 vs. 74.3% as at 31 March 2010.

“In Q1 2011, we have proven yet again we can continue our growth without sacrificing the profitability. A lot of

preparatory work has been done for the upgrade and expansion of our ATM channel and card products, to enable us

to reach out to unbanked and under-banked individuals in Rwanda, the results of which will be evident in the

nearest few months”, commented James Gatera, Managing Director.





Kigali, 6 June 2011

4

Q1 2011 Performance Highlights

Total Operating Income Total Assets

4,595

6,375

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Q1 2010 Q1 2011

RwF mln

+38.7%

156,519

211,123

-

50,000

100,000

150,000

200,000

250,000

Q1 2010 Q1 2011

RwF mln

+34.9%

Recurring Operating Costs Net Loans

2,038

2,588

-

500

1,000

1,500

2,000

2,500

3,000

Q1 2010 Q1 2011

RwF mln

+27.0%

84,509

104,902

-

20,000

40,000

60,000

80,000

100,000

120,000

Q1 2010 Q1 2011

RwF mln

+24.1%

Net Income Client Deposits

850

1,915

-

500

1,000

1,500

2,000

2,500

Q1 2010 Q1 2011

RwF mln

+125.4%

113,727

147,666

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Q1 2010 Q1 2011

RwF mln

+29.8%





Kigali, 6 June 2011

5

Q1 2011 INCOME STATEMENT

Q-o-Q Y-o-YMillions, unless otherwise noted Change Change

US$ RwF US$ RwF US$ RwF

Interest Income 7.9 4,770 8.3 4,943 6.9 3,941 -3.5% 21.0%

Interest Expense 1.9 1,143 2.0 1,160 1.8 1,047 -1.4% 9.2%

Net Interest Income 6.0 3,627 6.4 3,783 5.0 2,895 -4.1% 25.3%

Fee & Commiss ion I ncome 1.3 779 1.3 785 0.8 460 -0.7% 69.5%

Fee & Commiss ion Expenses - - - - - - NMF NMF

Net Fee & Commission Income 1.3 779 1.3 785 0.8 460 -0.7% 69.5%

Income From Documentary O perations 0.1 42 0.1 35 0.1 48 19.3% -13.5%

Expense On Documentary Operati ons - - - - - - NMF NMF

Net Income From Documentary Operations 0.1 42 0.1 35 0.1 48 19.3% -13.5%

Other Non-Interest Income 0.4 220 0.0 14 0.3 147 1454.8% 50.0%

Other Non-Interest Expense - - - - - - NMF NMF

Net Ot her Non-interest Income 0.4 220 0.0 14 0.3 147 1454.8% 50.0%

FX Trading Income 2.8 1,707 2.6 1,557 1.8 1,046 9.6% 63.3%

Net Non-Interest Income 4.6 2,748 4.0 2,391 3.0 1,700 14.9% 61.6%

Total Operating Income 10.6 6,375 10.4 6,175 8.0 4,595 3.2% 38.7%

Directors' Remuneration 0.1 63 0 57 0.0 19 11.1% 233.5%

Personnel Costs 2.0 1,200 1.4 862 2.0 1,121 39.3% 7.1%

Other Operating Expenses 1.5 881 2.7 1,588 1.2 691 -44.5% 27.6%

Depreciation 0.7 443 0.8 475 0.4 208 -6.8% 113.4%

Total Recurring Operating Costs 4.3 2,588 5.0 2,981 3.5 2,038 -13.2% 27.0%

-

Profit Before Provisions 6.3 3,787 5.4 3,193 4.5 2,557 18.6% 48.1%

Loan Loss Provisions (1.9) (1,158) (2.5) (1,469) (2.7) (1,538) -21.2% -24.7%

Gains on recovery 1.2 695 2.0 1,170 0.6 335 -40.6% 107.4%

Net Provisions (0.8) (463) (0.5) (299) (2.1) (1,203) 54.8% 61.5%

Profit Before Tax 5.5 3,324 4.9 2,894 2.4 1,354 14.9% 145.6%

-

Bonuses (Paid & Accrued) 0.8 485 0.2 114 0.2 114 325.7% 325.7%

Accrued Or Paid Income Tax 1.5 924 1.1 673 0.7 390 37.2% 136.9%

Net Income 3.2 1,915 3.5 2,107 1.5 850 -9.1% 125.4%

Q1 2011 Q4 2010 Q1 2010

Notes: (1) Growth calculations are based on RwF values

(2) US$ values have been derived from period-end RwF/US$ exchange rates set out on page 1 of this news report





Kigali, 6 June 2011

6

Q1 2011 BALANCE SHEET

Q-o-Q YTD

Millions, unless otherwise noted Change Change

US$ RwF US$ RwF US$ RwF

Cash 11.2 6,740 11.6 6,882 9.0 5,148 -2.1% 30.9%

Balances With BNR 13.6 8,187 10.7 6,333 7.7 4,430 29.3% 84.8%

Cash Balances With Banks 52.0 31,204 61.4 36,480 43.0 24,686 -14.5% 26.4%

Treasuries 33.9 20,317 30.6 18,202 30.3 17,410 11.6% 16.7%

Other Fixed Income Instruments 20.4 12,211 8.8 5,224 14.2 8,158 133.7% 49.7%

Gross Loans 185.0 111,014 177.5 105,527 155.7 89,410 5.2% 24.2%

Loan Loss Reserve (10.2) (6,113) (6.9) (4,124) (8.5) (4,901) 48.2% 24.7%

Net Loans To Clients 174.8 104,902 170.6 101,403 147.1 84,509 3.5% 24.1%

Net Investments 0.4 268 0.5 268 0.6 340 0.0% -21.1%

Net Property, Plant & Equipment 30.1 18,081 30.8 18,313 11.1 6,386 -1.3% 183.1%

Net Intangible Assets 0.6 362 0.3 181 0.1 45 100.5% 708.1%

Net Other Assets 14.7 8,851 7.4 4,391 9.4 5,407 101.6% 63.7%

Total Assets 351.8 211,123 332.5 197,677 272.5 156,519 6.8% 34.9%

Interbank Deposits 22.7 13,637 31.8 18,921 20.6 11,812 -27.9% 15.5%

Client Deposits 246.1 147,666 228.2 135,677 198.0 113,727 8.8% 29.8%

Borrowed Funds 3.0 1,811 - - - - NMF NMF

Payable I nterest & Divi dends - - - - 4.6 2,643 NMF -100.0%

Other Liabilities 25.4 15,223 18.9 11,208 15.6 8,945 35.8% 70.2%

Total Liabilities 297.2 178,338 278.9 165,807 238.7 137,128 7.6% 30.1%

Ordinary Shares 8.3 5,005 8.4 5,005 8.7 5,005 0.0% 0.0%

Retained Earnings 31.3 18,803 22.8 13,536 23.6 13,535 38.9% 38.9%

Revalua tion Reserve 11.8 7,061 12.0 7,151 - - -1.3% NMF

Net Income 3.2 1,915 10.4 6,179 1.5 850 -69.0% 125.3%

Shareholder's Equity 54.6 32,785 53.6 31,870 33.8 19,391 2.9% 69.1%

Total Liabilities & Shareholders' Equity 351.8 211,123 332.5 197,677 272.5 156,519 6.8% 34.9%

Q1 2011 Q4 2010 Q1 2010

Notes: (1) Growth calculations are based on RwF values

(2) US$ values have been derived from period-end RwF/US$ exchange rates set out on page 1 of this news report





Kigali, 6 June 2011

7

KEY RATIOS

Q1 2011 Q1 2010 2010Profitability

Return on Average Assets, Annualised, % 3.7% 2.2% 3.5%

Return on Average Equity, Annualised, % 23.7% 17.9% 24.5%

Net Interest Margin , Annualised, % 8.8% 8.6% 8.3%

Loan Yield, Annualised,% 17.0% 15.3% 14.4%

Interest Expense/Interest Income, % 24.0% 26.6% 23.5%

Cost of Deposits, Annualised,% 3.2% 3.6% 3.2%

Efficiency

Cost/Income Ratio 48.2% 46.8% 47.5%

Costs/Average Assets, Annualised, % 6.0% 6.2% 6.1%

Personnel Costs/Total Recurring Operating Costs 67.6% 61.5% 51.8%

Personne l Costs/Average Total Assets, Annual ised 3.4% 3.2% 3.0%Personnel Costs/Total Operating Income 27.4% 27.3% 25.0%

Net Income/Total Operating Income 30.0% 18.5% 29.2%

Liquidity

Net Loans/Total Assets,% 49.7% 54.0% 51.3%

Liquid Assets / Total Deposits 44.6% 43.6% 42.9%

Interbank Borrowings / Total Deposits 8.5% 9.4% 12.3%

Short Term Liquidity Gap 16.7% 14.0% 11.9%

Gross Loans / Total Deposits 68.9% 71.2% 68.4%

Asset Quality

NPLs / Gross Loans, % 8.5% 7.8% 8.4%

NPL Coverage Ratio 65.0% 55.2% 45.2%

Large Exposures / Gross Loans 6.4% 13.8% 5.8%

Cost of Risk, Annualised 1.7% 5.7% 1.9%

Leverage (Total Liabilities/Equity), Times 5.4 7.1 5.2

Capital Adequacy

Core Capital / Risk Weighted Assets 21.9% 16.1% 18.7%

Total Qualifying Capital / Risk Weighted Assets 23.1% 16.1% 20.1%

Off Balance Sheet Items / Total Qualifying Capital 452.3% 441.5% 402.8%

Large Exposures / Core Capital 31.6% 62.6% 27.9%

NPLs Less Provisions / Core Capital 19.0% 20.9% 15.3%

Market Sensitivity

Forex Exposure / Core Capital 7.0% 7.9% 8.9%

Forex Loans / Forex Deposi ts 1.7% 1.0% 1.1%

Forex Assets / Forex Liabilities 109.6% 106.3% 106.0%

Selected Operating Data

Full Time Employees 447 370 453

Assets per FTE (RwF) 472,310 423,025 436,372

Number of Active Branches 33 19 33

Number of ATMS 26 6 26

Number of POS Terminals 100 60 97

Note: ratios for Q1 2011 and Q1 2010 are annualised





Kigali, 6 June 2011

8

Ratio Definitions

1 Return On Average Total Assets (ROAA) equals Net Income of the period divided by average Total Assets for the same period;

2 Return On Average Total Equity (ROAE) equals Net Income of the period divided by average Total Shareholders’ Equity for the same period;

3 Average Interest Earning Assets are calculated on a quarterly basis; Interest Earning Assets include: Cash & Balances With Banks, Treasuries

and Net Loans To Clients;

4 Net Interest Margin equals Net Interest Income of the period divided by Average Interest Earning Assets for the same period;

5 Loan Yield equals Interest Income of the period divided by average Gross Loans for the same period;

6 Cost Of Funds equals Interest Expense of the period divided by average Total Liabilities for the same period;

7 Total Operating Income includes Net Interest Income and Non-Interest Income;

8 Costs include Total Recurring Operating Costs and Bonuses (Paid and Accrued);

9 Cost/Income equals Total Recurring Operating Costs plus Bonuses (Paid and Accrued) for the period divided by Total Operating Income;

10 Personnel Costs/Total Recurring Operating Costs equals the sum of Directors’ Remuneration, Personnel Costs and Bonuses (Paid and Accrued)

for the period divided by Total Recurring Operating Costs ;

11 Personnel Costs/Average Total Assets equals the sum of Directors’ Remuneration, Personnel Costs and Bonuses (Paid and Accrued) for the

period divided by average Total Assets ;12 Client Deposits include Corporate and Retail deposits;

13 Total Deposits include Interbank Deposits and Client Deposits;

14 Shareholders’ Equity equals to Total Shareholders’ Equity;

15 NPLs are loans overdue by more than 90 days;

16 NPL Coverage ratio equals Loan Loss Reserve as of the period end divided by NPLs as of the same date;

17 Large exposures include loans that in aggregate comprise 10% of Core Capital

18 Cost Of Risk equals Net Provision For Loan Losses of the period, plus provisions for (less recovery of) other assets, divided by average Gross

Loans To Clients for the same period;

19 otal Capital Adequacy equals Total Capital as of the period end divided by Total Risk Weighted Assets as of the same date, both calculated

n accordance with the requirements of the National Bank of Rwanda.

bank of kigali announces q1 2011 results

Documents