Connect with us

Hi, what are you looking for?

Capital Business
Capital Business


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.

Advertisement. Scroll to continue reading.

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.

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


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, 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...