bank of kigali announces q1 2012 reviewed results

7/31/2019 Bank of Kigali Announces Q1 2012 Reviewed Results

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*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. Q1 2012 and Q1 2011 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 33% market share as of 31 March 2012. The Bank has 47

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.

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, 29May 2012

607.1 RwF/US$ Period End Exchange Rate as at 31 March 2012

604.4 RwF/US$ Period End Exchange Rate as at 31 December 2011

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

Bank of Kigali Announces Q1 2012 Reviewed Results

Q1 2012 Change

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

Total Operating Income (Revenue) 14.3 8.7 5.8% 36.2%

Total Operating Costs 6.4 3.9 11.8% 26.4%

Profit Before Provisions 6.7 4.1 98.1% 42.8%

Net Income (Loss) 5.3 3.2 13.5% 69.4%

As at 31 March 2012 Change

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

Total Assets 499.2 303.0 5.3% 43.5%

Net Loans 218.1 132.4 7.5% 26.2%Client Deposits 335.5 203.7 12.5% 37.9%

Total Liabilities 392.4 238.2 5.3% 33.6%

Shareholders' Equity 106.8 64.8 5.3% 97.7%

Q1 2012 Q1 2011 YE 2011

Net Loans/Total Assets 43.7% 49.7% 42.8%

Net Loans/Client Deposits 65.0% 71.0% 68.0%

ROAA, annualised 4.4% 3.7% 3.6%

ROAE, annualised 20.5% 23.7% 18.6%

Basic & Diluted EPS, annualised 19.4 22.9 15.6


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

Income of RwF 3.2 billion (US$5.3 million) in Q1 2012, an increase of 13.5% q-o-q and 69.4% y-o-y.

Total Assets grew by 5.3% q-o-q and 43.5% y-o-y to RwF 303.0 billion (US$ 499.2 million) as at 31 March 2012 Net Loans grew by 7.5% q-o-q and 26.2% y-o-y to RwF 132.4 billion (US$ 218.1 million) as at 31 March 2012 Client Deposits grew by 12.5% q-o-q and 37.9% y-o-y to RwF 203.7 billion (US$ 335.5 million) as at 31 March

2012

Bank of Kigali Market Share Dynamics

26.4% 26.8%25.8%

26.7%27.4%

31.5%

25.9%

32.2%32.3%29.4%

28.1%

42.4%

32.8%

28.2%29.5%

40.3%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Total Assets Net Loans Customer Deposits Shareholders' Equity

%

2009 2010 2011 Q1 2012

Bank of Kigali Growth vs. Rwandan Banking Sector Growth in Q1 2012 and 2011

5.3%

7.5%

12.5%

5.3%

3.6%

12.3%

7.0%

10.8%

0%

2%

4%

6%

8%

10%

12%

14%

Total Assets Growth Net Loan Book Growth Client Deposits Growth Shareholders' Equity

Bank of Kigali Growth in Q1 2012 The Rwandan Banking Sector Growth in Q1 2012

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 Kiga li G rowth in 2011 The Rwandan Banking Sector Gr owth in 2011


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Q1 2012 Financial Highlights

Net Interest Income amounted to RwF 5.1 billion in Q1 2012, up 1.3% q-o-q and up 40.4% y-o-y. Net Fee & Commission

Income was RwF 1.4 billion in Q1 2012, up 22.0% q-o-q and up 73.5% y-o-y. Total Operating Income (Revenue) reached

RwF 8.7 billion in Q1 2012, up 5.8% q-o-q and up 36.2% y-o-y. Total Operating Costs grew by 11.8% q-o-q and grew by

26.4% y-o-y to RwF 3.9 in Q1 2012. Cost/Income ratio improved to 44.7% in Q1 2012 from 48.2% in the same quarter last

year. Annualised ROAA reached 4.4% in Q1 2012, whereas annualised ROAE reached 20.5% in Q1 2012.

Total Assets grew by 5.3% q-o-q and 43.5% y-o-y and stood at RwF 303.0 million as at 31 March 2012. Net Loans grew by

7.5% q-o-q and 26.2% y-o-y, reaching RwF 132.4 billion as at 31 March 2012 and Client Deposits totalled RwF 203.7 billion,

up 12.5% q-o-q and 37.9% y-o-y. Net Loans/Total Assets ratio stood at 43.7% as at 31 March 2012 compared to 49.7% in

Q1 2011.

Net Loans/Client Deposits ratio reached 65.0% as at 31 March 2012 vs. 71.0% as at 31 March 2011.

Business Highlights

The Bank opened three new branches and plans to open 10 more branches by 30th June 2012 This quarter the Bank launched its Premier Banking service at the ultra-modern Kigali City Tower for High Net

Worth and VIP clients

Signed contracts with the top two telecommunications providers, MTN and TIGO to begin offering mobile moneyservices at all Bank of Kigali branches

Completed the pilot phase of our MPAY product which enables our clients to pay for goods using their mobilephones at selected merchants. MPay will be launched in Q2 2012.

Over 22,000 retail current accounts were opened during the quarter Retail deposits grew by 8.2% q-o-q and 47.9% y-o-y reaching RwF 58.6 billion, while Corporate deposits grew by

14.4% q-o-q and 34.3% y-o-y totalling RwF 145.1 billion

Our retail gross loan book reached RwF 48.5 billion, up 17.8% q-o-q and 89.2% y-o-y while the corporate grossloan book decreased slightly by 0.2% q-o-q, up 4.6% y-o-y to Rwf 89.3 billion.

We are pleased with the Banks performance year to date. In Q1 2012, we began laying down the ground work to

execute our ambitious retail strategy. We have launched our Premier Banking service and concluded the pilot phase

of our MPay product. This product will complement our current VISA debit card offering and enable our customers

to transact without cash. We have also begun issuing our own VISA credit cards. The market should also look

forward to our launch of agency banking as well as the deployment of our Enhanced Notes Acceptor (ENA) deposit

taking ATMs in the next quarter, commentedJames Gatera, Chief Executive Officer.


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Performance Highlights

Total Operating Income Total Assets

6.4

8.7

0.0

1.0

2.0

3.0

4.0

5.0

6.07.0

8.0

9.0

10.0

Q1 2011 Q1 2012

Rwf bn

36.2%

211.1

303.0

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

Q1 2011 Q1 2012

Rwf bn

43.5%

Total Operating Costs Net Loans

3.1

3.9

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Q1 2011 Q1 2012

Rwf bn

26.4%

104.9

132.4

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

Q1 2011 Q1 2012

Rwf bn26.2%

Net Income Client Deposits

1.9

3.2

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Q1 2011 Q1 2012

Rwf bn

69.4%

147.7

203.7

0.0

50.0

100.0

150.0

200.0

250.0

Q1 2011 Q1 2012

Rwf bn

37.9%


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Income Statement

For the Quarter Ending 31 March 2012

Q4 2011 Q1 2011 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 805.5 779.2 843.5

RwF/US$ Exchange Rate, e-o-p 607.1 604.4 600.1

Interest Income 6.7 11.1 7.0 11.6 4.8 7.9 (3.8%) 41.3%

Interest Expense 1.6 2.7 2.0 3.3 1.1 1.9 (16.9%) 44.2%

Net Interest Income 5.1 8.4 5.0 8.3 3.6 6.0 1.3% 40.4%

Net Fee & Commission Income 1.4 2.2 1.1 1.8 0.8 1.3 22.0% 73.5%

Net I nc ome From Doc umenta ry Opera ti ons 0 .1 0.2 0.1 0.2 0.0 0.1 (14.9%) 178.7 %

FX Trading Income 1.9 3.1 1.7 2.9 1.7 2.8 8.0% 10.3%

Other Non-interest Income 0.2 0.4 0.2 0.3 0.2 0.4 22.9% 9.6%

Net Non-Interest Income 3.6 5.9 3.2 5.3 2.7 4.6 12.8% 30.7%

Total Operating Income 8.7 14.3 8.2 13.6 6.4 10.6 5.8% 36.2%

Directors' Remuneration 0.1 0.1 0.1 0.2 0.1 0.1 (29.3%) 23.7%

Staff Costs 1.6 2.7 1.3 2.2 1.2 2.0 25.1% 35.8%Bonuses (Paid & Accrued) 0.5 0.8 0.4 0.7 0.5 0.8 7.6% (5.9%)

Other Operating Expenses 1.2 2.0 0.7 1.2 0.9 1.5 64.4% 35.7%

Depreciation & Amortisation 0.5 0.9 0.9 1.5 0.4 0.7 (42.7%) 18.4%

Total Operating Costs 3.9 6.4 3.5 5.8 3.1 5.1 11.8% 26.4%

Profit Before Provisions 4.8 7.9 4.7 7.8 3.3 5.5 1.4% 45.3%

Loan Loss Provisions 2.5 4.0 3.6 6.0 1.2 1.9 (31.8%) 112.2 %

Gains on recovery 1.7 2.8 0.9 1.5 0.7 1.2 86.6% 146.5%

Net Provisions 0.7 1.2 2.7 4.4 0.5 0.8 (72.3%) 60.8%

Profit Before Tax 4.1 6.7 2.0 3.4 2.8 4.7 98.1% 42.8%

Accrued Or Paid Income Tax 0.8 1.3 (0.8) (1.3) 0.9 1.5 (199.9%) (12.2%)

Net Income 3.2 5.3 2.9 4.7 1.9 3.2 13.5% 69.4%

Q1 2012

Notes:

(1) Growth calculations are based on RwF values


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Statement of Financial Position

As at 31 March 2012

Q-o-Q Y-o-Y

Bn Mln Bn Mln Bn Mln Change Change

RwF US$ RwF US$ RwF US$

Cash 7.4 12.1 8.1 13.4 6.7 11.2 (9.2%) 9.4%

Balances With BNR 4.3 7.1 8.8 14.6 8.2 13.6 (51.1%) (47.3%)

Cash Balances With Banks 57.4 94.5 52.0 86.0 39.0 65.0 10.4% 47.1%

Treasuries 56.4 92.8 52.8 87.4 12.5 20.8 6.7% 350.8%

Other Fixed Income Instruments 15.5 25.5 8.2 13.6 12.2 20.4 89.2% 26.9%

Gross Loans 137.8 227.0 130.7 216.2 111.0 185.0 5.5% 24.1%

Loan Loss Reserve 5.4 8.9 7.5 12.5 6.1 10.2 (28.1%) (11.4%)

Net Loans To Clients 132.4 218.1 123.1 203.7 104.9 174.8 7.5% 26.2%

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

Net Property, Plant & Equipment 20.1 33.1 19.6 32.4 18.3 30.5 2.7% 9.9%

Intangible Assets 0.1 0.2 0.1 0.2 0.2 0.3 0.6% (7.3%)

Net Other Assets 9.3 15.3 14.9 24.7 8.9 14.7 (37.8%) 4.8%

Total Assets 303.0 499.2 287.9 476.3 211.1 351.8 5.3% 43.5%

Interbank Deposits 17.1 28.2 19.1 31.6 13.6 22.7 (10.3%) 25.4%

Client Deposits 203.7 335.5 181.0 299.5 147.7 246.1 12.5% 37.9%

Borrowed Funds 5.1 8.4 5.0 8.3 1.8 3.0 1.6% 180.4%

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

Other Liabil ities 12.3 20.3 21.2 35.1 15.2 25.4 (41.8%) (18.9%)

Total Liabilities 238.2 392.4 226.3 374.4 178.3 297.2 5.3% 33.6%

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

Reserves 47.2 77.8 37.9 62.8 18.8 31.3 24.5% 151.3%

Revaluation Reserve 7.7 12.6 7.8 12.8 7.1 11.8 (1.3%) 8.5%

Retained Earnings 3.245 5.3 9.2 15.2 1.9 3.2 (64.7%) 69.4%

Shareholder's Equity 64.8 106.8 61.6 101.9 32.8 54.6 5.3% 97.7%

Tot al L iabilit ie s & Shar eholde rs' Equity 3 03 .0 499.2 287.9 476.3 211.1 351.8 5.3% 43.5%

Q1 2012 Q4 2011 Q1 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


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Key Ratios

Q1 2012 Q1 2011 YE 2011

Profitability

Return on Average Assets, Annualised, % 4.4% 3.7% 3.6%

Return on Average Equity, Annualised, % 20.5% 23.7% 18.6%

Net Interest Margin , Annualised, % 8.2% 8.8% 8.4%

Loan Yield, Annualised,% 16.4% 16.3% 16.9%

Interest Expense/Interest Income, % 24.5% 24.0% 26.8%Cost of Funds, Annualised,% 3.0% 3.2% 3.1%

Efficiency

Cost/Income Ratio 44.7% 48.2% 48.4%

Costs/Average Assets, Annualised, % 5.3% 6.0% 5.9%

Personnel Costs/Total Recurring Operating Costs 55.6% 56.8% 51.8%

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

Personnel Costs/Total Operating Income 24.9% 27.4% 25.1%

Net Income/Total Operating Income 37.4% 30.0% 29.5%

Liquidity

Net Loans/Total Assets,% 43.7% 49.7% 42.8%

Liquid Assets / Total Deposits 56.8% 41.2% 60.8%

Interbank Borrowings / Total Deposits 7.8% 8.5% 9.5%

Short-term Liquidity Gap 47.4% 16.7% 43.0%

Gross Loans / Total Deposits 62.4% 68.8% 65.3%

Asset Quality

NPLs / Gross Loans, % 6.1% 10.0% 8.3%

NPL Coverage Ratio 64.3% 55.3% 69.1%

Large Exposures / Gross Loans 4.6% 6.4% 5.8%

Cost of Risk, Annualised 2.2% 1.7% 3.8%

Leverage (Total Liabilities/Equity), Times 3.7 5.4 3.7

Capital AdequacyCore Capital / Risk Weighted Assets 28.6% 18.2% 28.1%

Total Qualifying Capital / Risk Weighted Assets 29.6% 19.4% 29.1%

Off Balance Sheet Items / Total Qualifying Capital 375.5% 523.0% 363.3%

Large Exposures / Core Capital 11.1% 27.8% 14.0%

NPLs less Provisions / Core Capital 5.3% 19.2% 6.2%

Market Sensitivity

Forex Exposure / Core Capital 9.8% 9.0% 11.7%

Forex Loans / Forex Deposits 0.9% 1.7% 0.8%

Forex Assets / Forex Liabilities 126.1% 109.6% 105.3%

Forex Loans / Gross Loans 0.3% 0.6% 0.3%

Forex Deposits/Total Deposits 22.9% 25.7% 23.8%

Selected Operating Data

Full Time Employees 628 447 602

Assets per FTE (RwF in Mln) 482.5 472.3 478.2

Number of Active Branches 47 33 44

Number of ATMS 26 26 26

Number of POS Terminals 265 0 202

Number of Retail Current Accounts 95,782 43,378 73,716

Note: Ratios for Q1 2012 & Q1 2011 are annualised


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Definitions1 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 sameperiod;

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

bank of kigali announces q1 2012 reviewed results

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