bank of kigali announces full-year 2011 and q4 2011 ifrs audited results

Bank of Kigali Limited

Financially Transforming Lives

Kigali, 29 March 2012

*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.Q42011 numbers in this press release are reviewed interim 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 31 December 2011. The Bank has 46 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. The Bank has been recognized, for three years running since 2009, 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.

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

Lado Gurgenidze James Gatera Lawson Naibo Linda Rusagara Chairman of the Board Chief Executive Officer Chief Operating Officer 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. P.O Box 175. Plot 6112, Avenue de la Paix, Kigali-Rwanda.

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

604.4 RwF/US$ Period End Exchange Rate as at 31 December 2011 599.5RwF/US$ Period End Exchange Rate as at 30 September 2011 594.4 RwF/US$ Period End Exchange Rate as at 31 December 2010

Bank of Kigali Announces Full-Year 2011& Q4 2011 Audited IFRS Results

Change

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

Total Operating Income (Revenue) 48.7 29.5 39.3%

Total Operating Costs 23.6 14.3 41.3%

Profit Before Provisions 25.1 15.2 37.4%

Net Provision Expense 7.5 4.5 91.2%

Net Income (Loss) 14.4 8.7 40.6%

Change

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

Total Operating Income (Revenue) 13.6 8.2 5.9% 33.0%

Total Operating Costs 5.8 3.5 (16.9%) 11.7%

Profit Before Provisions 7.8 4.7 32.5% 54.6%

Net Income (Loss) 4.7 2.9 47.4% 36.8%

Change

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

Total Assets 476.3 287.9 45.6%

Net Loans 203.7 123.1 21.4%

Client Deposits 299.5 181.0 33.4%

Total Liabilities 374.4 226.3 36.5%

Shareholders' Equity 101.9 61.6 93.2%

As at 31 December 2011 As at 31 December 2010

Net Loans/Total Assets 42.8% 51.3%

Net Loans/Client Deposits 68.0% 74.7%

2011 2010

ROAA 3.6% 3.5%

ROAE 18.6% 24.5%

Basic & Diluted EPS in Rwf 15.6 12.3

Q4 2011

2011

As at 31 December 2011




2

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

Income of RwF8.7 billion (US$14.4million) in 2011, an increase of40.6% y-o-y.

Full Year 2011 Financial Highlights

Total Assets grew by 45.6% y-o-y to RwF287.9billion (US$476.3 million)as at 31 December 2011

Net Loans were up21.4% y-o-y to RwF123.1 billion (US$203.7 million)as at 31 December 2011

ClientDepositsincreasedby33.4% y-o-y to RwF181.0billion (US$299.5 million)as at 31 December 2011

Bank of Kigali Growth vs. Rwandan Banking Sector Growth in 2011 and 2009-2011

Bank of Kigali Market Share Dynamics

45.6%

21.4%

33.4%

93.2%

23.0%29.9%

23.8%

52.4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total Assets Growth

Net Loan Book Growth

Client Deposits Growth

Shareholders' Equity

Bank of Kigali Growth in 2011

The Rwandan Banking Sector Growth in 2011

89.5%

59.7% 65.6%

232.2%

53.7%45.4%

69.5%

118.0%

0%

50%

100%

150%

200%

250%

Total Assets Growth

Net Loan Book Growth

Client Deposits Growth

Shareholders' Equity

Bank of Kigali Growth 2009-2011

The Rwandan Banking Sector Growth 2009-2011

26.4% 26.8%25.8%

26.7%27.4%

31.5%

25.9%

32.2%32.4%29.4% 28.0%

40.8%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Total Assets Net Loans Customer Deposits Shareholders' Equity

%

2009 2010 2011




3

Full Year Financial Highlights

Net Interest Income equalled RwF16.6 billion for the year, up 36.2% y-o-y. Net Fee & Commission Income amounted

to RwF 4.3 billion for the year, up 43.2% y-o-y as the Bank embarked on its strategy to diversify operating income by

growing its non-interest income. FX Trading Income grew 45.7% y-o-y and amounted to RwF 7.6 billion. Total

Operating Income reached RwF 29.5 billion for the year, up 39.3% y-o-y. The Bank reported Total Operating Costs of

RwF14.3 billion in 2011, an increase of 41.3% y-o-y as a result of our continuous expansion. This brought the

Cost/Income ratio to 48.4% in 2011 from 47.5% in 2010.Net Income grew to RwF 8.7 billion, up 40.6% y-o-y, resulting

in earnings per share of RwF15.6 (US$0.03). The Board of Directors has recommended a Dividend per Share of RwF

6.5 (US$ 0.01) in the context of the dividend policy, subject to approval of the Annual General Meeting of

Shareholders on the 27th of April, 2012.

“We have had a very successful year at Bank of Kigali where we continued to grow our balance sheet and accounted

for over 50% of the banking sector’s profitability. In 2012, Management intends to begin deploying liquidity from the

capital raised in the IPO and long-term credit lines to increase our loan book, especially in the retail and SME sectors.

In addition we will continue to increase our branch footprint and invest in electronic channels”, commented James

Gatera, Chief Executive Officer.

“I wish to congratulate the management and staff on the Bank’s strong performance in 2011. This year we will focus

on translating our competitive advantage in terms of superior access to capital into securing and enhancing our

dominant position in the Rwandan market and growing the scope and scale of our retail banking franchise”,

commented Lado Gurgenidze, Chairman of the Board.

Q4 Financial Highlights

Net Interest Income equalled RwF 5.0 billion in Q4 2011, up 31.2% q-o-q and up 32.8% y-o-y. Net Fee & Commission

Income amounted to RwF 1.1 billion in Q4 2011, down 4.1% q-o-q and up 41.3% y-o-y. Total Operating Income

reached RwF 8.2 billion in Q4 2011, up 5.9% q-o-q and 33.0% y-o-y. Total Operating Costs decreased by 16.9% q-o-q

but grew by 11.7% y-o-y to RwF 3.5 billion in Q4 2011. Cost/Income ratio reached 42.3% in Q4 2011, down from

44.5% in Q3 2011 and from 50.4% in Q4 2010.ROAA reached 4.7%, whereas ROAE reached 24.5% in Q4 2011.

Total Assets grew by 5.1% q-o-q and 45.6% y-o-y, reaching RwF287.9 billion (US$476.3 million) as at 31 December

2011. Net Loans decreased by 1.7% q-o-q and grew 21.4% y-o-y, reaching RwF123.1 billion (US$203.7 million)as at 31

December 2011. The growth in Net Loans was driven primarily by retail lending, which increased by 98.5% y-o-y.

Client Deposits amounted to RwF 181.0 billion (US$299.5 million), up 5.1% q-o-q and up 33.4% y-o-y. Net

Loans/Total Assets ratio stood at 42.8% as at 31 December 2011 vs. 51.3% as at 31 December 2010, as the Bank was

yet to deploy the IPO proceeds raised in Q3 2011. Net Loans/Client Deposits ratio reached 68.0% as at 31 December

2011, compared to 74.7% as at 31 December 2010.




4

2011 Performance Highlights

Total Operating Income Total Assets

Total Operating Costs Net Loans

Net Income Client Deposits

21.1

29.5

0

5

10

15

20

25

30

35

2010 2011

Rwf bn

39.3%

197.7

287.9

0

50

100

150

200

250

300

350

2010 2011

Rwf bn

45.6%

10.1

14.3

0

2

4

6

8

10

12

14

16

2010 2011

Rwf bn

41.3%

101.4

123.1

0

20

40

60

80

100

120

140

2010 2011

Rwf bn

21.4%

6.2

8.7

0

1

2

3

4

5

6

7

8

9

10

2010 2011

Rwf bn

40.6%

135.7

181.0

0

20

40

60

80

100

120

140

160

180

200

2010 2011

Rwf bn

33.4%




5

Income Statement For the Year Ending 31 December 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

Y-o-Y

RwF Bn US$ Mln RwF Bn US$ Mln Change

RwF/Euro Exchange Rate, e-o-p

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

Interest Income 22.7 37.5 16.4 27.5 38.5%

Interest Expense 6.1 10.1 4.2 7.0 45.3%

Net Interest Income 16.6 27.5 12.2 20.5 36.2%

Net Fee & Commission Income 4.3 7.2 3.0 5.1 43.2%

Net Income From Documentary Operations 0.2 0.4 0.2 0.3 14.7%

FX Trading Income 7.6 12.6 5.2 8.8 45.7%

Other Non-interest Income 0.7 1.1 0.5 0.8 34.3%

Net Non-Interest Income 12.9 21.3 9.0 15.1 43.5%

Total Operating Income 29.5 48.7 21.1 35.6 39.3%

Directors' Remuneration 0.3 0.5 0.2 0.4 33.8%

Staff Costs 5.2 8.6 4.6 7.7 13.3%

Bonuses (Paid & Accrued) 1.9 3.1 0.5 0.8 312.3%

Depreciation 4.4 7.3 3.3 5.5 35.4%

Other Operating Expenses 2.4 4.0 1.5 2.6 58.2%

Total Operating Costs 14.3 23.6 10.1 17.0 41.3%

-

Profit Before Provisions 15.2 25.1 11.1 18.6 37.4%

Loan Loss Provisions 8.3 13.8 6.1 10.2 37.0%

Gains on recovery 3.8 6.2 3.7 6.2 2.1%

Net Provisions 4.5 7.5 2.4 4.0 91.2%

Profit Before Tax 10.7 17.6 8.7 14.6 22.7%

Accrued Or Paid Income Tax 2.0 3.3 2.5 4.2 (21.5%)

Net Income 8.7 14.4 6.2 10.4 40.6%

604.4 594.4

2011 2010

779.2 777.1




6

Income Statement For the Quarter Ending 31 December 2011


Q-o-Q Y-o-Y

RwF Bn US$ Mln RwF Bn US$ Mln RwF Bn US$ Mln Change Change

RwF/Euro Exchange Rate, e-o-p

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

Interest Income 7.0 11.6 5.4 9.0 4.9 8.3 30.0% 41.8%

Interest Expense 2.0 3.3 1.6 2.6 1.2 2.0 27.2% 71.3%

Net Interest Income 5.0 8.3 3.8 6.4 3.8 6.4 31.2% 32.8%

Net Fee & Commission Income 1.1 1.8 1.2 1.9 0.8 1.3 (4.1%) 41.3%

Net Income From Documentary Operations 0.1 0.2 0.1 0.1 0.0 0.1 123.6% 290.7%

FX Trading Income 1.7 2.9 2.5 4.1 1.6 2.6 (29.3%) 12.0%

Other Non-interest Income 0.2 0.3 0.2 0.4 0.0 0.0 (18.5%) 1314.8%

Net Non-Interest Income 3.2 5.3 3.9 6.5 2.4 4.0 (18.9%) 33.2%

Total Operating Income 8.2 13.6 7.8 12.9 6.2 10.4 5.9% 33.0%

Directors' Remuneration 0.1 0.2 0.1 0.1 0.0 0.1 68.4% 108.2%

Bonuses (Paid & Accrued) 0.4 0.7 0.5 0.8 0.1 0.2 (12.6%) 271.0%

Staff Costs 1.4 2.3 1.4 2.3 0.9 1.5 3.0% 54.3%

Depreciation 0.9 1.5 0.6 1.0 0.5 0.8 57.1% 92.7%

Other Operating Expenses 0.6 1.0 1.7 2.8 1.6 2.6 (62.8%) (59.8%)

Total Operating Costs 3.5 5.8 4.2 7.0 3.1 5.2 (16.9%) 11.7%

Profit Before Provisions 4.7 7.8 3.6 6.0 3.1 5.2 32.5% 54.6%

Loan Loss Provisions 3.6 6.0 1.9 3.1 1.5 2.5 92.2% 145.3%

Gains on recovery 0.9 1.5 1.2 1.9 1.2 2.0 (21.1%) (21.5%)

Net Provisions 2.7 4.4 0.7 1.2 0.3 0.5 277.3% 798.4%

Profit Before Tax 2.0 3.4 2.9 4.8 2.8 4.7 (28.4%) (25.9%)

Accrued Or Paid Income Tax (0.8) (1.3) 0.9 1.5 0.7 1.1 188.2% (220.5%)

Net Income 2.9 4.7 1.9 3.2 2.1 3.5 47.4% 36.8%

604.4 599.5 594.4

Q4 2011 Q3 2011 Q4 2010

779.2 815.0 777.1




7

Statement of Financial Position As at31 December 2011


Y-o-Y

RwF Bn US$ Mln RwF Bn US$ Mln RwF Bn US$ Mln Change

Cash 8.1 13.4 12.1 20.1 6.9 11.6 18.0%

Balances With BNR 8.8 14.6 4.3 7.1 6.3 10.7 39.3%

Cash Balances With Banks 52.0 86.0 41.9 69.9 36.5 61.4 42.5%

Treasuries 52.8 87.4 43.1 71.9 18.2 30.6 190.1%

Other Fixed Income Instruments 8.2 13.6 15.0 25.1 5.2 8.8 56.8%

Gross Loans 130.7 216.2 131.2 218.8 105.5 177.5 23.8%

Loan Loss Reserve 7.5 12.5 (5.9) (9.8) (4.1) (6.9) (282.6%)

Net Loans To Clients 123.1 203.7 125.3 209.0 101.4 170.6 21.4%

Net Investments 0.2 0.4 0.3 0.4 0.3 0.5 (18.6%)

Net Property, Plant & Equipment 19.6 32.4 19.5 32.5 18.3 30.8 6.8%

Intangible Assets 0.1 0.2 0.2 0.3 0.2 0.3 (19.0%)

Net Other Assets 14.9 24.7 12.2 20.4 4.4 7.4 239.8%

Total Assets 287.9 476.3 273.8 456.7 197.7 332.5 45.6%

Interbank Deposits 19.1 31.6 25.0 41.7 18.9 31.8 0.9%

Client Deposits 181.0 299.5 172.3 287.4 135.7 228.2 33.4%

Borrowed Funds 5.0 8.3 1.7 2.9 - - NMF

Payable Interest & Dividends 18.7 31.0 0.7 1.2 - - NMF

Other Liabilities 2.5 4.1 16.5 27.6 11.2 18.9 (77.8%)

Total Liabilities 226.3 374.4 216.2 360.7 165.8 278.9 36.5%

Ordinary Shares 6.7 11.0 6.7 11.1 5.0 8.4 33.3%

Reserves 37.9 62.8 38.2 63.7 13.5 22.8 180.4%

Revaluation Reserve 7.8 12.8 6.9 11.5 7.2 12.0 8.6%

Retained Earnings 9.2 15.2 5.8 9.7 6.2 10.4 48.9%

Shareholder's Equity 61.6 101.9 57.6 96.0 31.9 53.6 93.2%

Total liabilities & Shareholders'

Equity 287.9 476.3 273.8 456.7 197.7 332.5 45.6%

Q4 2011 Q3 2011 Q4 2010




8

Key Ratios

Note: Ratios for Q4 2010, Q3 2011& Q4 2011are annualised

2011 2010 Q4 2011 Q3 2011 Q4 2010

Profitability

Return on Average Assets, Annualised, % 3.6% 3.5% 4.7% 3.3% 4.8%

Return on Average Equity, Annualised, % 18.6% 24.5% 24.5% 17.4% 33.2%

Net Interest Margin , Annualised, % 8.4% 8.3% 10.1% 7.9% 10.3%

Loan Yield, Annualised,% 16.9% 15.8% 20.6% 15.5% 19.0%

Interest Expense/Interest Income, % 26.8% 25.6% 28.3% 28.9% 23.5%

Cost of Funds, Annualised,% 3.1% 2.8% 4.1% 3.3% 3.1%

Efficiency

Cost/Income Ratio 48.4% 47.5% 42.3% 44.5% 50.4%

Costs/Average Assets, Annualised, % 5.9% 5.8% 5.7% 7.1% 7.1%

Personnel Costs/Total Recurring Operating Costs 51.8% 52.3% 55.6% 45.7% 34.5%

Personnel Costs/Average Total Assets, Annualised 3.0% 3.0% 3.2% 3.2% 2.5%

Personnel Costs/Total Operating Income 25.1% 25.0% 23.5% 24.6% 17.4%

Net Income/Total Operating Income 29.5% 29.2% 34.8% 25.0% 33.9%

Liquidity

Net Loans/Total Assets,% 42.8% 51.3% 42.8% 45.8% 51.3%

Liquid Assets / Total Deposits 60.8% 43.9% 60.8% 51.4% 43.9%

Interbank Borrowings / Total Deposits 9.5% 12.2% 9.5% 12.7% 12.2%

Short-term Liquidity Gap 43.0% 11.9% 43.0% 36.6% 11.9%

Gross Loans / Total Deposits 65.3% 68.3% 65.3% 66.5% 68.3%

Asset Quality

NPLs / Gross Loans, % 8.3% 8.5% 8.3% 9.0% 8.5%

NPL Coverage Ratio 85.1% 45.8% 85.1% 47.8% 45.8%

Large Exposures / Gross Loans 8.8% 14.3% 8.8% 12.2% 14.3%

Cost of Risk, Annualised 3.8% 2.7% 9.1% 2.4% 1.3%

Leverage (Total Liabilities/Equity), Times 3.7 5.2 3.7 3.8 5.2

Capital Adequacy

Core Capital / Risk Weighted Assets 28.1% 18.7% 28.1% 27.0% 18.7%

Total Qualifying Capital / Risk Weighted Assets 29.1% 20.1% 29.1% 28.0% 20.1%

Off Balance Sheet Items / Total Qualifying Capital 363.3% 351.2% 363.3% 345.3% 351.2%

Large Exposures / Core Capital 21.3% 61.1% 21.3% 33.6% 61.1%

NPLs less Provisions / Core Capital 3.0% 19.7% 3.0% 12.8% 19.7%

Market Sensitivity

Forex Exposure / Core Capital 11.7% 11.5% 11.7% 6.3% 11.5%

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

Forex Assets / Forex Liabilities 105.3% 106.7% 105.3% 108.4% 106.7%

Forex Loans / Gross Loans 0.3% 0.4% 0.3% 0.3% 0.4%

Forex Deposits/Total Deposits 23.8% 27.4% 23.8% 22.8% 27.4%

Selected Operating Data

Full Time Employees 602 454 602 552 454

Assets per FTE (RwF Bn) 0.5 0.4 0.5 0.5 0.4

Number of Active Branches 44 33 44 41 33

Number of ATMS 26 26 26 26 26

Number of POS Terminals 202 97 202 173 97

Number of Retail Current Accounts 73,716 39,742 73,716 63,132 39,742




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 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 Earnings per share EPS equals net income for the year divided by the weighted average number of shares outstanding

during the year; 11 Personnel Costs/Total Recurring Operating Costs equals the sum of Directors’ Remuneration, Staff Costs and Bonuses

(Paid and Accrued) for the period divided by Total Recurring Operating Costs ; 12 Personnel Costs/Average Total Assets equals the sum of Directors’ Remuneration, Staff Costs and Bonuses (Paid and

Accrued) for the period divided by average Total Assets ; 13 Client Deposits include Corporate and Retail deposits; 14 Total Deposits include Interbank Deposits and Client Deposits; 15 Shareholders’ Equity equals to Total Shareholders’ Equity;

16 Short Term Liquidity Gap equals net liquid assets 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 include loans that in aggregate comprise 10% of Core Capital; 20 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; 21 Total Capital Adequacy equals Total Qualifying Capital as of the period end divided by Total Risk Weighted Assets as of

the same date, both calculated in accordance with the requirements of the National Bank 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.

bank of kigali announces full-year 2011 and q4 2011 ifrs audited results

Documents