NAIROBI, Kenya
Barclays Bank of Kenya has announced a profit before tax of Ksh5.5 billion for the half year ended 30 June 2013. The profit includes a one-off restructuring cost of Ksh788 million following the voluntary early retirement exercise in the first half of the year. Excluding this cost, the Bank’s operating profit for the period is Ksh6.3bn.
Managing Director Jeremy Awori (pictured, above) Barclays the bank was positioning itself for future growth on the back of a strong capital and liquidity position and significant investment in technology, especially in core banking systems and customer channels. These investments have led to enhanced efficiencies in the business and enabled the Bank to serve its customers better.
Mr. Awori said the first half of 2013 was affected by subdued demand for credit in view of the general elections and a drop in the interest rate environment. Nonetheless, the bank managed to grow its customer assets during this period, which is reflected in the growth in net interest income.
“The integration of Barclays’ businesses in Africa in 2013 has given us leverage on expertise, new products and financial muscle to finance bigger deals,” said Mr. Awori.
In March this year, the bank, as part of a consortium, was awarded the mandate to arrange facilities amounting to $5bn for KenGen to increase its power generation capacity. Asset quality continued to remain healthy, with gross non-performing assets as at June 2013 dropping to Ksh3.9bn from Ksh4.5bn in June 2012. This reflects a 13% drop in the gross non-performing loan book.
The loan loss provision of Ksh581m is only 1.1% of total loans and advances, a clear indication of the quality of assets that have been underwritten by the Bank. The Bank is well capitalized to support future balance sheet growth, especially in light of the revised Central Bank of Kenya Prudential Guidelines on Capital. “Our liquidity ratios are also very strong at 45% compared to the regulatory minimum of 20%. Return on shareholders’ equity has remained strong and this has enabled the bank to continue with its consistent dividend payout policy year-on-year,” he said.
The first half of the year saw the bank launch a revamped internet banking platform and Smartphone banking, as well as the introduction of a new fixed rate mortgage product. Looking forward to the rest of the year, the Bank aims to continue delivering excellent services to its customers through innovative products, while maintaining a high quality asset book to help Barclays Bank of Kenya become the ’Go-To’ bank.
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