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The drop was attributed to rise in operating costs which increased by Sh16 billion compared to Sh14 billion in 2012/CFM

Finance

Barclays posts Sh11.1bn FY 2013 pre-tax profit

The drop was attributed to rise in operating costs which increased by Sh16 billion compared to Sh14 billion in 2012/CFM

The drop was attributed to rise in operating costs which increased by Sh16 billion compared to Sh14 billion in 2012/CFM

NAIROBI, Kenya, Feb 6 – Barclays Bank has recorded a 14 percent drop in pre-tax profit for the 2013 full year to Sh11.1 billion from Sh13 billion posted the previous year.

The drop was attributed to rise in operating costs which increased by Sh16 billion compared to Sh14 billion in 2012.

Releasing the financial performance, Barclays Chief Finance Officer Yusuf Omari said total expenses were largely due to staff costs which hit Sh8.1 billion compared to Sh7.8 billion in 2012.

Omari also noted that the rise in costs was partially due to investment in technology which focused on improving the core banking platform, mobile and Internet banking services as well as online bulk payment system.

“Barclays undertook a branch expansion and refurbishment project as well as investment in ‘intelligent’ ATMs with functionalities such as touch screen capability, cash deposit and cheque book ordering in order to deliver an enhanced customer experience,” he said.

Total income rose by 2 percent to Sh27.9 billion from Sh27.4 billion while total assets increased by 12 percent to Sh207 billion from Sh185 billion.

Net interest income rose by 4 percent to Sh18 billion on the back of growth interest earning assets, despite the pressure of declining interest rates.

Non-interest income dropped by 2 percent to Sh9 billion mainly due to reduced foreign exchange income following a stable currency market in the year.

Loan and advances to customers rose steadily by Sh14 billion to close the year at Sh118 billion.

“Barclays remains confident about the three year growth strategy. 2013 has been about building strong foundation as reflected in the recent investment and operational changes,” Barclays Kenya Managing Director Jeremy Awori said during an investor briefing on Thursday.

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Shareholders will take home 50 cents per share as final dividend recommended by the bank’s board.

Last year shareholders got a 70 cents dividend per share.

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