This archive report was first published on 29 August 2019.
Barclays Bank of Kenya (BBK) has posted a flat performance in its earnings, reporting Sh3.88 billion after-tax earnings for the period ended June 30, 2019, a slight increase from Sh3.76 billion for a similar period in 2018.
According to the lender, the performance is mainly attributable to a four percent growth in total income, a three percent drop in operating costs, and a four percent drop in impairment.
Profit after tax normalised rose by 13 percent to Sh4.3 billion, with the lender channelling Sh560 million towards rebranding to Absa, a process that is expected to be concluded at the end of the year.
Barclays Kenya MD Jeremy Awori noted that the transition journey to Absa has now gained momentum and is about 65 percent complete.
Operating expenses saw a marginal drop to Sh10.05 billion from Sh10.38 billion, while non-interest income grew 12 percent to Sh5.29 billion.
The lender's net interest income, including loans to customers and government securities, rose by seven percent to Sh15.18 billion, driven by a slight growth in the interest from loans and government securities.
Barclays' total income rose by four percent to Sh16.3 billion, while total assets grew by 11.75 percent to Sh353.84 billion, attributed to growth in government securities and other liquid assets.
The lender grew its loan book by five percent to Sh186.66 billion and customer deposits increased six percent to Sh229.67 billion.
However, gross non-performing loans increased by Sh1.34 billion to Sh15.7 billion in the period, with the lender's loan loss provision dropping to Sh1.64 billion.
