Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Finance

Barclays Bank Kenya profit down by 6pc to Sh6.9Bn

NAIROBI, Kenya, Feb 28 – Barclays Bank of Kenya (BBK) has recorded a 6.3 percent decline in net profit to Sh6.9 billion for the full year 2017 compared to the previous year where it posted Sh7.3 billion.   

Total interest income went down by 3 percent to Sh27 billion compared to Sh28 billion previous year owing to flat growth in customer loans to close at Sh168 billion in the period under review.

Non-Funded Income also dropped by 10 percent largely driven by changes in accounting treatment and lower mark to market gains on fixed income trading book.

“The implementation of the interest rate cap compressed our margins and resulted in a decline in our revenues. Currently, our strategy is to close the income gap by increasing sales volumes in the upper segments, increasing our product penetration in our current client base and increasing our focus on transactional banking deposits,” Barclays Kenya Managing Director, Jeremy Awori, said.

The Bank costs dropped by 1 percent year on year to stand at Sh16.8 billion with the costs inclusive of Sh500Mn incurred to meet the Voluntary Exit Scheme (VES) program.

 “To manage costs, we are making sustainable investments in a number of running initiatives designed to create sustainable efficiencies. These initiatives include the automation of our processing centers, investments in alternate channels and the implementation of branch rationalisation programmes,” said Awori.

Click to comment
Advertisement

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...

Headlines

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

Kenya

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

Coronavirus

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

Coronavirus

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