Barclays Bank of Kenya (BBK) has recorded a 6.3% decline in net profit to Ksh 6.9 billion for the full year 2017 compared to the previous year where it posted Ksh 7.3 billion.
Total interest income went down by 3% to Ksh 27 billion compared to Ksh 28 billion previous year owing to flat growth in customer loans to close at Ksh 168 billion in the period under review.
Non-Funded Income also dropped by 10% largely driven by changes in accounting treatment and lower mark to market gains on fixed income trading book.
“The implementation of the interest rate cap compressed our margins and resulted in a decline in our revenues. Currently, our strategy is to close the income gap by increasing sales volumes in the upper segments, increasing our product penetration in our current client base and increasing our focus on transactional banking deposits,” Barclays Kenya Managing Director, Jeremy Awori, said.
The Bank costs dropped by 1% year on year to stand at Ksh 16.8 billion with the costs inclusive of Ksh 500 million incurred to meet the Voluntary Exit Scheme (VES) programme.
“To manage costs, we are making sustainable investments in a number of running initiatives designed to create sustainable efficiencies. These initiatives include the automation of our processing centers, investments in alternate channels and the implementation of branch rationalisation programmes,” said Awori.