Barclays posts growth to Sh8.7b

February 13, 2013
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Outgoing Barclays Kenya Managing Director Adan Mohamed said the growth was largely driven by an 11 percent increase in customer deposits to Sh138 billion during the period/FILE
Outgoing Barclays Kenya Managing Director Adan Mohamed said the growth was largely driven by an 11 percent increase in customer deposits to Sh138 billion during the period/FILE
NAIROBI, Kenya, Feb 13 – Barclays Bank of Kenya has announced a 7.7 percent growth in its 2012 full year net profit to Sh8.7 billion from Sh8.1 billion in 2011.

Outgoing Barclays Kenya Managing Director Adan Mohamed said the growth was largely driven by an 11 percent increase in customer deposits to Sh138 billion during the period.

Total income asset went up by 4 percent to Sh27.4 billion during the period under review compared to Sh26.3 billion in 2011, attributed to increase in interest income by 11 percent.

“When interest rates went through the roof we did not increase our asset prices as much. That is something that we took a very conscious decision and we did that just to make sure that we don’t get short term increase in revenues and later deal with impairments,” Mohamed said.

Earnings per share stood at Sh1.61 up from with Sh1.49 in the same period last year while total assets increased by 11 percent to Sh185 billion from Sh166 billion in 2011.

However, total operating expenses increased by five percent to Sh14.4 billion from Sh14.2 billion in the previous year.

The bank has announced a final dividend payout of 70 cents per share to the shareholders down from Sh1.50 paid in 2011.

Mohamed said the bank had not included a special dividend paid out in 2011 of 60 cents despite a drop in its net profits by 23.8 per cent, to cushion its capital base.

“The financial landscape is changing; significant amounts of capital buffers are required in future and this is the right thing to do. And for that reason we haven’t given any special dividend this year. The main driver for this is actually the new prudential guidelines that we will have an impact on additional capital requirement coming into effect next and beyond,” the bank’s outgoing boss argued.

The bank’s total capital in 2012 went down to Sh32.1 billion from Sh33.4 billion a trend which the bank said would not want to continue.

Meanwhile, touching on Tuesday’s announcement of 3,700 job cuts across the globe this year, Mohamed said staff of Barclays Kenya maybe also affected in the process.

He said the management will focus on the efficiency brought about by investment in technology and its impact on some employees.

Mohamed added that some employees affected maybe deployed in other departments rather than sent home.

“I wouldn’t be able to give you an exact number now but it’s something that we continue to look into, in the context of efficiencies that we generate through the investments that we have,” Mohamed said.

Barclays plc Chief Executive Officer Antony Jenkins said the job cuts were due to the recent Libor rate-rigging scandal in the UK and the group’s annual net loss in 2012.

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