bank of kigali announces 1h 2012 & q2 2012 reviewed results

7/31/2019 Bank of Kigali Announces 1H 2012 & Q2 2012 Reviewed Results

1/9

*Y-o-Y and Q-o-Q growth calculations are based on Rwanda Francs values. US$ values have been derived from period-end RwF/US$ exchange rates. Half year and quarterly numbers in

this press release are reviewed numbers in accordance with Instruction Number 12/2000 of 14 September 2000 issued by the National Bank of Rwanda.

About Bank of Kigali Limited

Established in 1966, Bank of Kigali is the largest bank in Rwanda by total assets, with a 32% market share as of 30 June 2012. The Bank has 56 branches in

Rwanda and provides retail and commercial banking services to over 100,000 individuals and over 13,000 legal entities.

In 2011, the Bank became the second domestic company to be listed on the Rwanda Stock Exchange. Since 2009, the Bank has been recognized for three years

running as the Best Bank in Rwanda by Emeafinance and Bank of the Year by The Banker. In 2011 it was also recognized as the Company of the Year by the

Kenya Institute of Management Rwanda. In 2012, it was further bestowed with the Best East African Bank Award by the African Banker magazine.

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

Lado Gurgenidze James Gatera Shivon Byamukama Linda Rusagara

Chairman of the Board Chief Executive Officer Company Secretary/Head of Corporate

Affairs

Investor Relations Officer

Tel: +995 599 477 272 Tel: +250 252 593 100 / +250 252 593 200 Tel: +250 252 593 100 /+250 252 593 200 Tel: +250 252 593 100 / +250 252 593 200

Fax: +995 532 25 22 61 Fax: +250 252 575 504 / +250 252 573 461 Fax: +250 252 575 504 / +250 252 573 461 Fax: +250 252 575 504 / +250 252 573 461

Email: [email protected] Email: [email protected] Email: [email protected] Email: [email protected]

SWIFT: BKIGRWRW SWIFT: BKIGRWRW SWIFT: BKIGRWRW

Company Code/ TIN n 100003458 Company Code/ TIN n 100003458 Company Code/ TIN n 100003458

P.O Box 175. Plot 6112, Avenue de la Paix,

Kigali-Rwanda.


Kigali-Rwanda.


Kigali-Rwanda.

Kigali, 30August 2012

Bank of Kigali Announces 1H 2012 and Q2 2012 Reviewed Results

Change

US$ (mln) RwF (bn) Y-o-Y

Total Operating Income (Revenue) 28.2 17.3 27.9%

Total Operating Costs 14.6 8.9 35.2%

Profit Before Provisions 13.6 8.3 20.9%Net Income (Loss) 9.8 6.0 54.5%

US$ (mln) RwF (bn) Q-o-Q YTD Y-o-Y

Total Assets 510.8 312.8 3.2% 8.7% 26.9%

Net Loans 232.9 142.6 7.7% 15.8% 28.1%

Client Balances & Deposits 342.4 209.7 3.0% 15.8% 19.1%

Total Liabilities 407.5 249.6 4.8% 10.3% 17.9%

Shareholders' Equity 103.3 63.3 (2.4%) 2.7% 82.0%

US$ (mln) RwF (bn) Q-o-Q Y-o-Y

Total Operating Income (Revenue) 14.0 8.6 (1.4%) 20.4%

Total Operating Costs 8.2 5.0 29.5% 42.8%Profit Before Provisions 5.8 3.5 (26.4%) (1.5%)

Net Income (Loss) 4.5 2.8 (14.7%) 40.1%

Q2 2012 Q1 2012 YE2011 Q2 2011

Net Loans/Total Assets 45.6% 43.7% 42.8% 45.2%

Net Loans/Client Deposits 68.0% 65.0% 68.0% 63.2%

Basic Book Value per share (Rwf) 94.8 97.1 92.3 69.4

ROAA, annualised 3.7% 4.4% 3.6% 3.6%

ROAE, annualised 17.7% 20.5% 18.6% 23.7%

Basic EPS, annualised (Rwf) 18.0 19.4 15.6 15.5

The following exchange rates ha ve been used for the transl ation of the Bank's fina ncia l s tatements

30-Jun-12 30-Mar-12 31-Dec-11 30-Jun-11

Rwf/US$ Period End Exchange Rates 612.4 607.1 604.4 601.9

Change

1H 2012

Q2 2012

As at 30 June 2012

Change


2/9

Bank of Kigali (the Bank), the leading bank in Rwanda, announced today its IFRS-based results, reporting Net

Income of RwF 6.0 billion (US$9.8 million) for the first half in 2012, an increase of 54.5% y-o-y.

Total Assets grew by 3.2% q-o-q and 26.9% y-o-y (8.7% YTD) to RwF 312.8 billion (US$ 510.8 million) as at 30June 2012

Net Loans rose by 7.7% q-o-q and 28.1% y-o-y (15.8% YTD) to RwF 142.6 billion (US$ 232.9 million) as at 30 June2012 Client Balances & Deposits increased by 3.0% q-o-q and 19.1% y-o-y (15.8% YTD) to RwF 209.7 billion (US$ 342.4

million) as at 30 June 2012

Shareholders Equity decreased by 2.4% q-o-q, due to the dividend distribution for the year ended 2011, and82.0% y-o-y (2.7% YTD) to RwF 63.3 billion (US$ 103.3 million) as at 30 June 2012

Bank of Kigali Market Share* Dynamics

Bank of Kigali Growth vs. Rwandan Banking Sector Growth in 1H 2012 and 2011

26.4% 26.8% 25.8%26.7%27.4%

31.5%

25.9%

32.2%32.3%29.4%

28.2%

41.9%

31.6%

27.0%28.5%

38.3%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Total Assets Net Loans Customer Deposits Shareholders' Equity

%

2009 2010 2011 1H 2012

8.7%

15.8% 15.8%

10.9%

26.2%

14.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Total Assets Net Loans CustomerDeposits

Bank of Kigali Growth 1H 2012

Rwandan Banking Sector Growth 1H 2012

45.6%

21.4%

33.4%

23.0%

29.9%

23.8%

0%

10%

20%

30%

40%

50%

Total Assets Net Loan Book Client Deposits

Bank of Kigali Growth in 2011

The Rwandan Banking Sector Growth in 2011

*Market Share calculations are based on unaudited 1H 2012 banking industry figures


3/9

3

1H 2012 Financial Highlights

Net Interest Income grew by 32.4% y-o-y to Rwf 10.3 billion, driven by an increase in the loan book. Net Interest Margin

slightly decreased to 8.3% in 1H 2012 from 8.5% in 1H 2011. Net Fee & Commission Income amounted to Rwf 2.8 billion,

up 57.4% y-o-y, while the Net Fee & Commission Income to Total Operating Income (Revenue) ratio improved to 16.1% in

1H 2012 as compared to 13.6% in 1H 2011. Total Operating Income in 1H 2012 reached Rwf 17.3 billion, up 27.9% y-o-y.

Total Operating Costs increased by 35.2% y-o-y to Rwf 8.9 billion, resulting in an increase in the Cost/Income Ratio to51.7% in 1H 2012 as compared to 43.2% in 1H 2011. The Bank reported Net Operating Income of Rwf 6.0 billion in 1H

2012, up 54.5% y-o-y.

Annualised ROAA reached 4.0% in 1H 2012, whereas annualised ROAE reached 19.3% in 1H 2012.

As at 30 June 2012, the Banks Total Assets stood at Rwf 312.8 billion, up 3.2% q-o-q and 26.9% y-o-y (up 8.7% YTD).

Liquid Assets divided by Total Assets stood at 42.9% as at 30 June 2012, down from 46.5% as at 31 March 2012 and

down from 43.5% as at 30 June 2011. Gross Loans grew by 8.3% q-o-q and 28.7% y-o-y to Rwf 149.2 billion, driven

primarily by an increase in retail lending (rising by 14.2% YTD). Net Loans increased by 7.7% q-o-q and 28.1% y-o-y to

Rwf 142.6 billion (up 15.8% YTD) as at 30 June 2012. Net Loans/Total Assets ratio increased to 45.6% as at 30 June

2012 from 43.7% as at 31 March 2012 and 45.2% as at 30 June 2011. NPL ratio increased slightly to 6.5% in 1H 2012,

from 6.1% in Q1 2012 and down from 7.5% in 1H 2011.

Client Balances & Deposits reached Rwf 209.7 billion, recording an increase of 15.8% q-o-q and 19.1% y-o-y (up

15.8% YTD) while Shareholders Equity equalled Rwf 63.3 billion, down 2.4% q-o-q and up 82.0% y-o-y (up 2.7% YTD)

as at 30 June 2012.

Q2 2012 Financial Highlights

Net Interest Income increased by 25.4% y-o-y, 1.3% q-o-q to Rwf 5.2 billion, driven by an increase in the loan book. Net

Interest Margin was higher at 8.3% in Q2 2012 from 8.2% in Q1 2012 and down from 9.0% in Q2 2011. Net Fee &

Commission Income amounted to Rwf 1.4 billion, up 5.7% q-o-q and 44.7% y-o-y. This improved the Net Fee &

Commission Income to Total Operating Income ratio to 16.7%, higher than 13.9% recorded in Q2 2011 as the Bank

continued to increase its transactional income. Total Operating Income was recorded at Rwf 8.6 billion in Q2 2012, up20.4% y-o-y.

Total Operating Costs increased by 29.5% q-o-q and 42.8% y-o-y to reach Rwf 5.0 billion, as a result of our branch and ATM

rollout and the increase in the employee headcount. Cost/Income Ratio rose to 58.7% in Q2 2012 from 44.7% in Q1 2012

and 49.5% in Q2 2011. The Bank reported quarterly Net Operating Income of Rwf 2.8 billion in Q2 2012, up 40.1% y-o-y.

Business Highlights

The Bank opened nine new branches in the quarter ending 30 June 2012, therefore reaching our target of 12branches for the year 2012.

Launched our mPay product which enables our clients to pay for goods using their mobile phones insupermarkets, pharmacies, general shops and other merchants.

The Bank rolled out 13 ATMs and began the upgrade of the ATM infrastructure to accept deposits Over 19,000 retail current accounts were opened during the quarter as well as more than 900 corporate current

accounts.

Retail deposits grew by 10.3% q-o-q and 19.9% YTD reaching RwF 61.7 billion, while Corporate deposits grewslightly by 0.2% q-o-q and 14.2% YTD totalling RwF 148.0 billion

Our retail gross loan book increased by 17.5% q-o-q and 37.7% YTD while the corporate gross loan book increasedslightly by 4.5% q-o-q, up 5.8% YTD reaching over Rwf 102 billion at the end of Q2 2012.


4/9

We are pleased with the Banks year to date performance as well as the performance this quarter. We were able to

launch a total of 12 branches by the end of June 2012 and deploy deposit taking ATMs which enable customers to

deposit money on their account on real time basis without using envelopes; the deployment of this technology is the

1st in Africa, outside South Africa. In the quarter, the Bank also entered into partnership with MTN and Tigo to

provide their mobile money services in all our branches. In addition, our mobile bill payment platform, mPay, was

brought to the market and, in another 1st

for Bank of Kigali, we launched our VISA Gold credit cards and VISA prepaidcards. In the next half of the year, we will continue to expand our retail product offering and we expect the strong

performance and balance sheet growth to continue. commentedJames Gatera, Chief Executive Officer.

Q2 Performance Highlights

Total Operating Income Total Assets

Total Operating Costs Client Balances & Deposits

Net Income Net Loans

93.0101.4 104.9

111.3

125.3 123.1132.4

142.6

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

Q3-2010 Q4-2010 Q1- 2011 Q2- 2011 Q3-2011 Q4-2011 Q1-2012 Q2-2012

Rwf bn53.4%

1.9

2.11.9 2.0 1.9

2.9

3.2

2.8

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Q3-2010 Q4-2010 Q1-2011 Q2-2011 Q3-2011 Q4-2011 Q1-2012 Q2-2012

Rwf bn

126.3135.7

147.7

176.1 173.0 181.0203.7

209.7

0.00

50.00

100.00

150.00

200.00

250.00

Q3-2010 Q4-2010Q1-2011Q2-2011 Q3-2011 Q4-2011 Q1-2012Q2-2012

Rwf bn

66.1%

2.6

3.0 3.13.5

4.2

3.53.9

5.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Q3-2010 Q4-2010 Q1-2011 Q2-2011 Q3-2011

Q4-2011 Q1-2012Q2-2012

Rwf bn

173.5197.7

211.1

246.5

273.8287.9

303.0 312.8

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

Q3-2010 Q4-2010Q1-2011 Q2-2011 Q3-2011 Q4-2011 Q1-2012 Q2-2012

Rwf bn

80.2%

5.2

6.2 6.47.1

7.88.2

8.7 8.6

0.0

1.0

2.0

3.0

4.0

5.06.0

7.0

8.0

9.0

10.0

Q3-2010 Q4-2010 Q1-2011 Q2-2011Q3-2011 Q4-2011Q1-2012 Q2-2012

Rwf bn


5/9

5

Income Statement

For the first half ending 30 June 2012

Growth,

RwF (Bn) US$ (Mln) RwF (Bn) US$ (Mln) Y-o-Y

RwF/Euro Exchange Rate, e-o-p 759.6 867.3

RwF/US$ Exchange Rate, e-o-p 612.4 601.9

Interest Income 13.6 22.3 10.3 17.1 32.7%

Interest Expense 3.4 5.5 2.5 4.2 33.6%

Net Interest Income 10.3 16.7 7.7 12.9 32.4%

Net Fee & Commission Income 2.8 4.5 1.8 2.9 57.4%

Net Income From Documentary Operations 0.2 0.3 0.1 0.2 91.4%

FX Trading Income 3.6 5.8 3.4 5.7 4.4%

Other Non-interest Income 0.5 0.7 0.5 0.8 (0.1%)

Net Non-Interest Income 7.0 11.4 5.7 9.5 21.8%

Total Operating Income 17.3 28.2 13.5 22.4 27.9%

Directors' Remuneration 0.1 0.2 0.2 0.3 (7.9%)

Staff Costs 3.4 5.5 2.5 4.1 35.9%

Bonuses (Paid & Accrued) 1.4 2.2 1.0 1.6 39.1%

Other Operating Expenses 2.8 4.5 2.1 3.4 35.3%

Depreciation & Amortisation 1.3 2.1 0.9 1.6 36.0%

Total Operating Costs 8.9 14.6 6.6 11.0 35.2%

Profit Before Provisions 8.3 13.6 6.9 11.4 20.9%

Loan Loss Provisions 3.7 6.0 2.8 4.7 30.3%

Gains on recovery 3.0 4.9 1.7 2.8 78.3%

Net Provisions 0.7 1.1 1.1 1.9 (40.4%)

Profit Before Tax 7.7 12.5 5.7 9.5 33.2%

Accrued Or Paid Income Tax 1.6 2.7 1.9 3.1 (11.6%)

Net Income (Loss) 6.0 9.8 3.9 6.5 54.5%

1H 2012 1H 2011

Notes:

(1) Growth calculations are based on RwF values


6/9

6

Income Statement

For the Quarter Ending 30 June 2012

Growth, Growth,

RwF (Bn) US$ (Mln) RwF (Bn) US$ (Mln) RwF (Bn) US$ (Mln) Q-o-Q Y-o-Y

RwF/Euro Exchange Rate, e-o-p 759.6 805.5 867.3

RwF/US$ Exchange Rate, e-o-p 612.4 607.1 601.9

Interest Income 6.9 11.3 6.7 11.1 5.5 9.1 2.2% 25.3%

Interest Expense 1.7 2.8 1.6 2.7 1.4 2.3 5.0% 24.8%

Net Interest Income 5.2 8.4 5.1 8.4 4.1 6.8 1.3% 25.4%

Net Fee & Commission Income 1.4 2.3 1.4 2.2 1.0 1.6 5.7% 44.7%

Net Income From Documentary Operations 0.1 0.1 0.1 0.2 0.1 0.1 (39.1%) 26.3%

FX Trading Income 1.7 2.8 1.9 3.1 1.7 2.9 (9.9%) (1.5%)

Other Non-interest Income 0.2 0.3 0.2 0.4 0.2 0.4 (12.6%) (9.4%)

Net Non-Interest Income 3.4 5.6 3.6 5.9 3.0 5.0 (5.2%) 13.6%

Total Operating Income 8.6 14.0 8.7 14.3 7.1 11.8 (1.4%) 20.4%

Directors' Remuneration 0.1 0.1 0.1 0.1 0.1 0.2 (1.9%) (27.0%)

Staff Costs 1.7 2.8 1.6 2.7 1.3 2.1 7.1% 36.1%

Bonuses (Paid & Accrued) 0.9 1.5 0.5 0.8 0.5 0.8 95.8% 84.2%

Other Operating Expenses 1.6 2.6 1.2 2.0 1.2 1.9 31.1% 34.9%

Depreciation & Amortisation 0.7 1.2 0.5 0.9 0.5 0.8 42.4% 52.0%

Total Operating Costs 5.0 8.2 3.9 6.4 3.5 5.9 29.5% 42.8%

Profit Before Provisions 3.5 5.8 4.8 7.9 3.6 6.0 (26.4%) (1.5%)

Loan Loss Provisions 1.2 2.0 2.5 4.0 1.7 2.8 (50.0%) (26.5%)

Gains on recovery 1.3 2.1 1.7 2.8 1.0 1.6 (24.7%) 30.4%

Net Provisions (0.1) (0.1) 0.7 1.2 0.7 1.1 (108.3%) (109.0%)

Profit Before Tax 3.6 5.9 4.1 6.7 2.9 4.8 (11.3%) 23.7%

Income Tax 0.8 1.4 0.8 1.3 0.9 1.5 2.3% (11.1%)

Net Income (Loss) 2.8 4.5 3.2 5.3 2.0 3.3 (14.7%) 40.1%

Q2 2012 Q1 2012 Q2 2011

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 press release


7/9

7

Statement of Financial Position

As at 30 June 2012

Change Change Y-o-Y

Bn Mln Bn Mln Bn Mln Bn Mln Q-o-Q YTD Y-o-Y

RwF US$ RwF US$ RwF US$ RwF US$

Cash 7.2 11.8 7.4 12.1 8.1 13.4 9.2 15.2 (1.8%) (10.9%) (21.0%)Balances With BNR 10.5 17.2 4.3 7.1 8.8 14.6 5.7 9.5 144.2% 19.5% 84.6%

Cash Balances With Banks 16.0 26.1 57.4 94.5 52.0 86.0 44.6 74.0 (72.1%) (69.2%) (64.1%)

Treasuries 60.9 99.4 56.4 92.8 52.8 87.4 41.2 68.4 8.1% 15.3% 48.0%

Other Fixed Income Instruments 39.5 64.6 15.5 25.5 8.2 13.6 6.7 11.1 155.1% 382.7% 491.8%

Gross Loans 149.2 243.6 137.8 227.0 130.7 216.2 115.9 192.6 8.3% 14.2% 28.7%

Loan Loss Reserve 6.6 10.8 5.4 8.9 7.5 12.5 4.6 7.7 21.9% (12.4%) 43.1%

Net Loans To Clients 142.6 232.9 132.4 218.1 123.1 203.7 111.3 184.9 7.7% 15.8% 28.1%

Net Investments 0.2 0.4 0.2 0.4 0.2 0.4 0.3 0.4 0.0% 0.0% (18.6%)

Net Property, Plant & Equipment 21.3 34.8 20.1 33.1 19.6 32.4 19.0 31.5 6.1% 9.0% 12.4%

Intangible Assets 0.1 0.2 0.1 0.2 0.1 0.2 0.2 0.3 (5.1%) (4.5%) (14.7%)

Net Other Assets 14.3 23.4 9.3 15.3 14.9 24.7 8.5 14.1 54.5% (4.0%) 68.4%

Total Assets 312.8 510.8 303.0 499.2 287.9 476.3 246.5 409.5 3.2% 8.7% 26.9%

Interbank Deposits 18.6 30.4 17.1 28.2 19.1 31.6 16.9 28.0 9.0% (2.3%) 10.6%

Client Balances & Deposits 209.7 342.4 203.7 335.5 181.0 299.5 176.1 292.6 3.0% 15.8% 19.1%

Borrowed Funds 4.9 8.0 5.1 8.4 5.0 8.3 1.9 3.1 (3.8%) (2.2%) 162.3%

Payable Interest & Dividends 0.0 0.1 - - - - - - 0.0% 0.0% 0.0%

Other Liabil ities 16.3 26.6 12.3 20.3 21.2 35.1 16.9 28.0 31.9% (23.2%) (3.4%)

Total Liabilities 249.6 407.5 238.2 392.4 226.3 374.4 211.7 351.7 4.8% 10.3% 17.9%

Ordinary Shares 6.7 10.9 6.7 11.0 6.7 11.0 5.0 8.3 0.0% 0.0% 33.3%

Reserves 38.2 62.3 38.1 62.7 37.9 62.8 18.9 31.4 0.3% 0.5% 101.9%

Revaluation Reserve 7.6 12.3 7.7 12.6 7.8 12.8 7.0 11.6 (1.3%) (2.6%) 8.4%

Retained Earnings 10.9 17.7 12.4 20.5 9.2 15.2 3.9 6.5 (12.7%) 18.1% 179.4%

Shareholder's Equity 63.3 103.3 64.8 106.8 61.6 101.9 34.8 57.7 (2.4%) 2.7% 82.0%

Total liabilit ies & Shareholders' Equity 312.8 510.8 303.0 499.2 287.9 476.3 246.5 409.5 3.2% 8.7% 26.9%

Q1 2012 YE 2011Q2 2012 Q2 2011

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 press release


8/9

8

Key Performance Ratios

1H 2012 1H 2011 Q2 2012 Q1 2012 Q2 2011 YE 2011 YE 2010

Profitability

Return on Average Assets, % 4.0% 3.5% 3.7% 4.4% 3.6% 3.6% 3.5%

Return on Average Equity, % 19.3% 23.4% 17.7% 20.5% 23.7% 18.6% 24.5%

Net Interest Margin , % 8.3% 8.5% 8.3% 8.2% 9.0% 8.4% 8.3%

Loan Yield, % 16.1% 16.8% 16.3% 16.4% 17.0% 16.9% 15.8%

Interest Expense/Interest Income,% 24.8% 24.6% 25.1% 24.5% 25.2% 26.8% 25.6%

Cost of Funds, % 2.5% 2.5% 2.6% 2.5% 2.7% 3.1% 2.8%

Efficiency

Cost/Income Ratio 51.7% 48.9% 58.7% 44.7% 49.5% 48.4% 47.5%

Costs/Average Assets, % 3.0% 3.0% 6.7% 5.3% 6.3% 5.9% 5.8%

Personnel Costs/Total Recurring Operating Costs 54.6% 54.7% 53.8% 55.6% 52.9% 51.8% 52.3%

Personnel Costs/Average Total Assets, Annualised 3.2% 3.3% 3.6% 2.9% 3.4% 2.9% 3.0%

Personnel Costs/Total Operating Income 28.2% 26.8% 31.6% 24.9% 26.2% 25.1% 25.0%

Net Income/Total Operating Income 34.8% 28.8% 32.3% 37.4% 27.8% 29.5% 29.2%

Liquidity

Net Loans/Total Assets,% 45.6% 45.2% 45.6% 43.7% 45.2% 42.8% 51.3%

Liquid Assets / Total Deposits 58.8% 55.6% 58.8% 63.8% 55.6% 64.9% 47.3%

Interbank Borrowings / Total Deposits 8.2% 8.7% 8.2% 7.8% 8.7% 9.5% 12.2%Short-term Liquidity Gap 58.2% 25.0% 58.2% 47.4% 25.0% 43.0% 11.9%

Gross Loans / Total Deposits 65.3% 60.1% 65.3% 62.4% 60.1% 65.3% 68.3%

Asset Quality

NPLs / Gross Loans, % 6.5% 7.5% 6.5% 6.1% 7.5% 8.3% 8.5%

NPL Coverage Ratio 67.8% 52.7% 67.8% 64.3% 52.7% 69.1% 45.8%

Large Exposures / Gross Loans 3.9% 3.6% 3.9% 4.6% 3.6% 8.8% 14.3%

Cost of Risk, Annualised 1.0% 2.1% -0.2% 2.2% 2.5% 3.8% 2.0%

Leverage (Total Liabil ities/Equity), Times 3.9 6.1 3.9 3.7 6.1 3.7 5.2

Capital Adequacy

Core Capital / Risk Weighted Assets 26.5% 17.2% 26.5% 28.6% 17.2% 28.1% 18.7%

Total Qualifying Capital / Risk Weighted Assets 27.4% 18.3% 27.4% 29.6% 18.3% 29.1% 20.1%

Off Balance Sheet Items / Total Qualifying Capital 444.1% 549.5% 444.1% 375.5% 549.5% 363.1% 351.2%

Large Exposures / Core Capital 10.5% 15.2% 10.5% 11.1% 15.2% 21.3% 61.1%

NPLs less Provisions / Core Capital 5.6% 14.9% 5.6% 5.3% 14.9% 3.0% 19.7%

Market Sensitivity

Forex Loans / Forex Deposits 0.6% 1.4% 0.6% 0.9% 1.4% 0.8% 1.0%

Forex Assets / Forex Liabilities 35.7% 35.7% 35.7% 126.1% 35.7% 105.3% 106.7%

Forex Loans / Gross Loans 0.2% 0.6% 0.2% 0.3% 0.6% 0.3% 0.4%

Forex Deposits/Total Deposits 22.1% 26.1% 22.1% 22.9% 26.1% 23.8% 27.4%

Selected Operating Data

Full Time Employees 797 500 797 628 500 602 454

Assets per FTE (RwF in bil lion) 0.4 0.5 0.4 0.5 0.5 0.5 0.4

Number of Active Branches 56 38 56 47 38 44 33

Number of ATMS 39 26 39 26 26 26 26

Number of POS Terminals 292 100 292 265 100 202 97Number of Retail current accounts 163,005 89,624 163,005 143,422 89,624 124,248 50,073

Quarterly and half-yearly ratios are annualised, where applicable


9/9

9

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 s ame period;

3 Average Interest Earning Assets are calculated on a qua rterly basis; Interest Earning Assets i nclude: Cash &

Bala nces With Banks, Treas uries a nd Net Loans To Cli ents;

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 on loans & advances 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 sa me period;

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

8 Costs include Total Recurring Operating Costs and Bonuses (Paid a nd 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 equa ls the sum of Directors Remuneration, Staff Costs and

Bonus es (Pai d an d Accrued) for the pe riod di vide d by Total Re curring Operating Costs ;

11 Personnel Costs/Average Total Ass ets equals the sum of Directors Remuneration, Staff Costs and Bonuses (Pai d

and Accrued) for the pe riod di vided by average Total Asse ts ;

12 Cl ient Deposits include Corporate and Retai l deposits ;13 Liquid Assets include Cash, Cash Bal ances With the NBR, Cash Bal ances With Banks, Treasuries and Other Fixed

Income Instruments;

14 Total Deposits inc lude Interbank Deposits and Cl ient Deposits ;

15 Shareholders Equity equals to Total Shareholders Equity;

16 Short Term Liquidity Gap equals net l iquid ass ets with maturities equal to or less than 2 years divided by total

assets;

17 NPLs are loans overdue by more than 90 days

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

19 Large exposures i nclude loans that in a ggregate comprise 10% of Core Capital;

20 Cost Of Risk equal s Net Provis ion For Loan Loss es of the period, plus provisi ons for (less recovery of) other assets,

divided by average Gross Loans To Cli ents for the s ame pe riod;

21 Total Capital Adequacy equals Total Qualifying Capital a s of the period end divided by Total Risk Weighted

Assets a s of the sa me date, both cal culated in a ccordance with the requirements of the National Ba nk of

Rwanda.

22 Y-o-Y refers to year on year change on the Rwf values

23 Q-o-Q refers to quarter on quarter change on the Rwf values

24 YE refer to Year End figures as at 31 December.

25 YTD refer to Year to Date f igures

bank of kigali announces 1h 2012 & q2 2012 reviewed results

Documents