This archive report was first published on 29 August 2019.
Barclays Kenya has reported a half-year profit of Ksh.3.9 billion, a 2.6% increase from the previous period, but the growth was largely offset by transition costs.
The bank incurred an additional Ksh.560.8 million towards its transition to the Absa brand, bringing the total net transition charge to Ksh.804.2 million.
Despite the charge, Barclays Kenya maintained its dividend per share payout at Ksh.0.20 and handled the cost through internal operational cash flows.
Excluding the one-off transition charge, the bank would have posted a 13% growth in profit after tax to Ksh.4.3 billion, driven by a strengthened balance sheet and improved asset appreciation.
Barclays Kenya's loan book grew to Ksh.186.7 billion, and customer deposits widened by Ksh.12.9 billion, resulting in net interest income of Ksh.15.2 billion.
The bank also trimmed its operational expenses by 9.6% to Ksh.10 billion, while gross operating income grew to Ksh.16.3 billion, with a significant increase in non-interest funded income to Ksh.5.3 billion.
As of the end of the period, the bank's non-performing loans stood at Ksh.4.3 billion, with a bad loans exposure of Ksh.2.2 billion.
Barclays Kenya's Managing Director, Jeremy Awori, noted that the transition journey to Absa has gained momentum, with 65% completion, and significant investments in technology, branch modernization, and branding.
