Barclays Bank of Kenya (BBK) recorded Sh7.47 billion in after-tax profits for the 2018 financial year, reflecting a 7% year-on-year increase driven by expanded non-interest income streams.
The bank's non-interest income climbed 14.7% to Sh9.7 billion, fueled by fees, commissions, and foreign exchange gains, while net interest income grew marginally by 0.8% to Sh21.99 billion despite a 5% rise in the loan book to Sh177.35 billion.
Customer deposits reached Sh207.4 billion, an 11.5% increase, while gross non-performing loans rose 14.88% to Sh13.9 billion. Loan loss provisions jumped 24.2% to Sh3.87 billion as credit risks escalated.
BBK declared a full-year dividend of Sh1.1 per share, a 10% increase, and announced plans to rebrand as Absa Group Limited by 2020. CEO Jeremy Awori noted the transition would involve undisclosed capital injections from the parent group, with a phased rollout expected by 2019.
This performance aligns with broader banking sector growth, as KCB Group and Stanbic Holdings also reported profit increases in 2018. Central Bank of Kenya data showed commercial banks achieved a record Sh152.3 billion in pre-tax profits for the year.
