NAIROBI, Kenya, Feb 22 – Barclays Bank of Kenya’s pre-tax profit fell by 10 pc in full year 2016 to Sh10.8bn, compared to Sh12.07bn over the same period in 2015.
The management attributes the decline to implementation of the Banking amendment Act in the fourth quarter of 2016 as well as increase in loan impairments.
The bank’s Chief Executive Jeremy Awori says a turbulent macro-economic environment caused heightened job losses resulting in higher than usual default rates especially in unsecured loans.
“We have instituted corrective measures to contain impairment and they are beginning to bear fruit. We have invested in people, processes and systems to manage our impairment better,” Awori says while announcing the results.
The banks’ loan book however increased by 16pc while total revenue went up by 8percent to Sh31.7 billion backed up by new income lines such as bancassurance and fixed income trading.
Net interest income grew by 9per cent to Sh22 billion while non interest income grew by 3per cent.
Customer deposits went up by 8 per cent to hit Sh178 billion while costs went up by 8 per cent to Sh17bn.
“We are investing heavily in the automation and digitisation of our systems, processes and solutions in a bid to make our institutions more efficient,” Awori says.