This archive report was first published on 30 August 2019.
Barclays Kenya has reported a net profit of Sh3.87 billion in the first half of 2023, marking a 3% increase from the Sh3.76 billion recorded in the same period last year.
The bank's profitability was boosted by a 6% increase in interest income to Sh15.2 billion, with interest from government securities and customer loans each rising by Sh500 million.
Non-interest income also increased to Sh5.3 billion from Sh4.7 billion, contributing to a total revenue of Sh16.3 billion.
Bank costs reduced by 3% to Sh8.4 billion as the lender implemented cost-cutting initiatives, including automation of its processing centres and investment in alternative channels.
Barclays Kenya, which is 68.5% owned by Absa, an African banking group, has invested in systems that need to be separated and incurred transitional service agreements costs paid to Barclays Plc for the provision of various services during the separation period.
As a result, the bank set aside Sh561 million as an exceptional item for these investments.
Despite facing an image crisis after a safe deposit box with fake dollars was discovered in one of its branches and a break-in at one of its automated teller machines, Barclays Kenya Chief Executive Jeremy Awori said the bank was pleased with the results.
The bank's share price at the Nairobi Securities Exchange (NSE) emerged as the second-best performing banking stock, even as the lender warned that the separation from Barclays Plc will have an impact on its financial results over the next two years.
