Connect with us

Hi, what are you looking for?


Barclays 2016 FY pre-tax profit dips 10pc to Sh Sh10.8bn

Barclays bank logo/FILE

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.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...