Unveiling the Frw8.44 Interim Dividend Story by Bank of Kigali

Bank of Kigali, a key player in Rwanda’s financial landscape, has recently announced an interim dividend of Frw8.44 per share. This decision follows the earlier recommendation of a dividend of Rwf32.5 ($0.029) per ordinary share for the fiscal year ending December 31, 2022. 

The earlier dividend was net of withholding tax and payable on or before June 30, 2023. Notably, the FY23e dividend yield of bank of kigali stands at 11.0%, surpassing the 364-Day T-bill yield of 9.6%.

This interim dividend aligns with historical trends, reflecting the bank’s commitment to shareholder value. Comparing it with the recommended dividend of Rwf32.5 ($0.029) per share for the year ending December 31, 2022, underscores continuity in rewarding shareholders and maintaining financial stability. 

Bank of Kigali is Rwanda’s dominant bank, owned 55.8% by the government. It’s listed on the Rwanda Stock Exchange and the Nairobi Securities Exchange, holding the 11th position in market valuation on the NSE with a market capitalization of KES 30.7 billion.

BK Group’s robust financial performance, with a 40% YoY growth in net income in Q1 2022 and an 18.4% YoY increase to FRw 43.5 billion in Q3 2022, highlights consistent earnings growth. Key indicators like a Return on Average Assets (ROAA) of 3.5% and a Return on Average Equity (ROAE) of 19.5% as of September 30, 2022, indicate strong profitability. 

The reported dividend payable balance of FRw 41.1 billion as of November 30, 2022, demonstrates financial strength, liquidity, and a commitment to rewarding shareholders.

Bank of Kigali’s historic cross-listing on the nse kenya in 2018 marked Rwanda’s inaugural international stock market listing, facilitated by a Sh7 billion rights offer. The nse share prices today, currently trading at 295 RWF, indicate increased investor confidence and optimism in the bank’s performance. 

The interim dividend announcement may attract further investor interest, given the bank’s consistent financial growth and a dividend yield of 11.0% in FY23e compared to the 364-Day T-bill yield of 9.6%.

Over the past two decades, Rwanda has undergone a significant economic recovery, boasting an impressive average GDP growth of approximately 8 percent annually. 

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Notably, the country achieved double-digit growth in the final two quarters of 2019, and in 2022, real GDP expanded by 8.2%. Operating as a mixed economic system, Rwanda combines centralized economic planning and government regulation with elements of private freedom. Its economic freedom score of 52.2 places it as the 137th freest economy in the 2023 Index. 

Despite these strides, Rwanda still grapples with income poverty and lags in human development, portraying a current account deficit of an estimated 12.6% of GDP in 2022, up from 10.7% in 2021, primarily due to a substantial import bill.

The Bank of Kigali’s declaration of an interim dividend at Frw8.44 per share holds significance for existing investors, signaling a commitment to shareholder value. 

For potential investors, this move underscores the bank’s financial strength and positive outlook. Considering this announcement, investors may find the Bank of Kigali an attractive prospect, showcasing stability and a commitment to providing returns through dividends.

For inquiries or assistance, their is a multitude of bank of kigali contacts options provided. Reach out via telephone at (250) 788 143 000 or through text at (250) 788 319 112. For email communication, contact them at bk@bk.rw. 

To access the BK Mobile application, apply through the BK website or use the USSD code *334# to navigate the menu. Engage in convenient online banking by accessing the mobile version of the Online Banking system through your mobile device’s browser. 

Additionally, you can visit numerous bank of kigali branches for in-person assistance. These diverse channels ensure flexibility and accessibility for customers to connect with the bank of kigali according to their preferences and needs.