Barclays Kenya Q1 profit up 20pc

May 26, 2009
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, NAIROBI, Kenya, May 26 – Barclays Bank of Kenya has recorded a 20 percent increase in pre-tax profit for the first quarter ended March 31, 2009.

The bank’s Managing Director Adan Mohamed said profit had risen from Sh2,197 million compared to Sh1,831 million a year ago, and attributed the performance to effective management of the bank’s overall business, in what has been a challenging beginning to 2009.

“Customer deposits are up 28 percent to Sh715 million compared to Sh560 million a year earlier. Other highlights of the bank’s financial results include a 43 percent reduction in the loan loss provision to  Sh365 million from Sh646 million last year,” he said.

Operating expenses went down five percent to Sh3,108 million from last year’s Sh3,284 million. 
 
Mr Mohamed said: “We are very pleased with our quarterly performance given the market conditions.  The key drivers to the performance have been focus on cost management and improvement in the loan loss provision."  

“Income has been broadly flat versus the same period last year, reflecting our proactive prudent lending policy in the face of a general decline in the level of activity in the economy; however, we will continue to lend to all customer segments – consumers, business and SME. To that end, we recently launched a "Double Your Salo" lending campaign targeting the personal sector. We also introduced the SME Enterprise Account to meet the unique needs of small- to mid-sized business customers that require access to financing with flexible repayment periods.”

He expressed cautious optimism that the bank would remain well position in the rest of the year.
 

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