- Customer loans and advances grew by 7% to Ksh164 billion
- Impairment registered a 33% drop from Kshs.2.0 billion to Kshs.1.4 billion
- Customer deposits grew by 3% to Kshs.189 billion
- Interim dividend pay-out of Kshs.0.20 per share.
Barclays Bank of Kenya has today reported a profit before tax of Kshs.5.2 billion for the period ended 30 June 2017.
According to the bank’s Managing Director, Jeremy Awori, these results are a demonstration of the bank’s resilience in a challenging operating environment that is largely characterised by tough macro-economic conditions and the effects of the new interest rates law.
In the period under review, Barclays registered a 7% growth in the loan book to Kshs.164 billion which was mainly driven by a 8% and 12% growth in the corporate bank and SME bank businesses respectively. Customer deposits grew by 3% to Kshs.189 billion mainly driven by transactional accounts.
“Continued growth in the SME loan book is a clear demonstration that the decision by the bank to make capital and training more accessible to SMEs is paying off. Similarly, growth on the Corporate banking book is being driven by an on-going diversification agenda that has seen the bank increase its focus on public sector clients and large local corporates so as to ensure sustainable results for the business,” said Jeremy Awori, Managing Director, Barclays Bank of Kenya.
Impairment recorded an impressive 33% drop from Kshs.2.0 billion in 2016 to Kshs.1.4 billion this year. This is largely attributed to enhanced internal efficiencies on the collections and recoveries front as well as a better performance from the new bookings.
This performance was however impacted by a 5% decline in net interest income to Kshs.10.5 billion and an 8% reduction in total revenue to Ksh 14.9 billion due to the impact of the interest rates law which came into effect in September last year.
Other Highlights include:
Costs remained flat year on year despite inflationary adjustments. We continue to manage our costs with a number of running initiatives to create efficiencies. Top of these initiatives include automation of our processing centres, investment in alternative channels and branch rationalisation programmes.
Capital & Liquidity
The bank is well capitalized and liquid with strong ratios showing sufficient headroom above the regulatory requirements – Our total capital adequacy ratio at 17.8% and liquidity reserve positions at 36.1% against the regulatory limits of 14.5% and 20% respectively.
We are therefore well positioned to support future growth in line with our medium to long term strategy.
We remain focussed on delivering strong returns to our shareholders. The Board has recommended payment of interim dividend of Kes 0.2 per Ordinary share.
“These results show that, we remain well positioned to continue delivering on our promise to contribute to the development of the local financial services sector as guided by our shared growth agenda which takes the view that our success is intertwined with the success of the societies we operate in,” said Jeremy Awori.