Barclays Kenya Posts Solid Profitability with Income up to Ksh6.1 Billion in First Quarter

Barclays Bank of Kenya Limited (Barclays Kenya) announced its quarterly results for the period ending March 31st 2010, with income up seven per cent to Ksh6,069m (2009: Ksh5,671m). Profit before tax for the quarter was Ksh2 billion, representing a marginal decline over the previous year which was attributed mainly to an increase in costs over the period.

Highlights of the financial results for Barclays Kenya:

Net interest income up 13 per cent reflecting effective margin management in a low interest environment
Balance sheet strengthened to total assets of Ksh169bn (2009:Ksh165bn)
Provisions for loan impairments broadly flat compared to the same period last year

Operating expenses increase to Ksh4bn (2009:3.5bn) due to one-off staff related costs. However, underlying expenses were in line with inflation and business expectation

Commenting on Barclays results, Mr. Adan Mohamed, Regional Managing Director – Barclays East and West Africa, said:

“We are pleased with our quarterly performance, which is in line with our plans. During the quarter we maintained a positive outlook and strengthened the business with the introduction of new products and offerings for both Consumer and Commercial customers, including La Riba asset finance and Beba na Barclaycard.”

Mr. Mohamed said corresponding to growth plans for 2010, Barclays is implementing a new business wide system platform that will streamline core banking operations and improve efficiency and convenience to its customers. The new platform is a strategic investment which positions the bank for future growth.

Commenting on the strategic investment, Mr. Mohamed said: “Our customers are at the heart of everything we do. We are pleased with this new system as customers will benefit from the new integrated account profile, and additional world-class features, which include secure Internet banking. We plan the transition to the new system during the third quarter of the year.”

In conclusion, Mr. Mohamed observed that Barclays is well-positioned in the improving economic environment and is keen to pass on the benefit of the improving market conditions to customers. “We took a bold position in April by being the first to cut our base lending rate in response to improving economic conditions. This was followed by a 4.9 per cent reduction in unsecured loan rates for both personal and small business customers.  We therefore fully expect to generate good growth in interest income through the year -- by increasing our revenue per customer as well as attracting new customers,” said Mr. Mohamed.