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Kenya

BBK posts Sh5.5b pre-tax HY profit

BARCLAYSNAIROBI, Kenya Aug 6 – Barclays Bank of Kenya has recorded a Sh5.5 billion profit before tax in the half year of 2013.

Releasing the results on Tuesday, Barclays Bank of Kenya Managing Director Jeremy Awori says the profit includes a one off restructuring cost of Sh788 million following a voluntary retirement exercise done in the first half of the year.

“Excluding this cost, the bank’s operating profit for the period is at Sh6.3 billion,” he said.

He announced that net income grew at 3 percent to Sh9.2 billion compared to Sh8.9 billion recorded in the first half of 2012 on the back of growth in interest earning assets and better margin management.

“Operating costs reduced marginally by 1 percent to Sh6.87 billion from Sh6.9 billion recorded same period last year while customer deposits grew at 13 percent to Sh138 billion from 122 billion in the first half of 2012,” he announced.

Gross non-performing loans went down 13 percent to Sh3.9 billion from Sh4.5 billion recorded last year while customer assets increased by 6 percent to 107 billion compared to 101 billion recorded same period last year.

The bank announced an interim dividend of Sh0.20 per share on the backdrop of restricting cost and maintaining huge capital.

He said the bank was positioning itself for future growth on the back of a strong capital and liquidity position as well as significant investment in technology in core banking systems and customer channels.

“These Investments have led to enhanced efficiencies in the business and enabled the bank to serve its customers better,” he said.

Awori said the first half of 2013 was affected by subdued demand for credit in view of the general elections and a drop in the interest rate environment.

“The integration of Barclays’ businesses in Africa in 2013 had given the bank leverage on expertise, new products and financial muscle to finance bigger deals,” he said.

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The bank is looking into growing its number of sales force and marketers in the year in bid to increase its market share.

“We are also looking into growing our business in Small Medium Enterprises and the business banking area, credit card space, as well as bancassurance areas in order to create more revenue,” he said.

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