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Barclays Bank posts Sh3.9 billion profit in half year results as transition to ABSA gains momentum

The bank’s Managing Director, Jeremy Awori, said the shift to the new name has gained momentum and the transition is about 65 per cent complete/FILE

NAIROBI, Kenya, Aug 30 – Barclays Bank of Kenya’s transition to Absa Group is almost complete, after eight of the nine banks in Africa already switched to Absa in July 2018.

The bank’s Managing Director, Jeremy Awori, said the shift to the new name has gained momentum and the transition is about 65 per cent complete.

“Our transition journey to Absa has now gained momentum and is about 65% complete. We are making significant investments in technology, branch modernization and branding, which will ultimately enable us to give our customers a better banking experience,” Awori said.

The bank had said in July 2018 it will continue as Barclays Bank as the other 12 African markets transitioned to ABSA Group.

The bank has registered a lean 2.6 percent growth in profits for the first six months of 2019 to Sh3.9 billion, compared to Sh3.8 billion that was recorded in the same period last year.

This has been attributed to the bank’s additional investments brought about the transition process from Barclays to ABSA Group.

The transition period has also forced the bank to incur additional costs of Sh560.8 million summing up the total cost of the transition to Sh804.2 million.

Absa is an acronym for Amalgamated Banks of South Africa.

The bank has also posted 13 per cent growth in Profit After Tax (PAT) to Sh4.3 that has been linked to a strengthened balance sheet.

Barclay’s loan book grew to Sh186.7 billion as customer deposits increased by an additional Sh12.9 billion taking net interest income earned to Sh15.2 billion.

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The lender’s operational expenditures were at Sh10 billion as gross operating income grew to Sh16.3 billion.

The bank’s value for non-interest funded income rose to Sh5.3 billion.

Non-performing loans stood at Sh4.3 billion while its bad loans were reported at Sh2.2 billion.

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