Barclays Bank of Kenya has now revealed full details on the fate of customers currently banking as seven branches it has earmarked to shut down beginning October 1 as the lender fights to cut down operating costs in the wake of dwindling financial fortunes.
According to a communication to customers, the bank’s Haile Selassie branch will be merged with Harambee Avenue while the Waiyaki Way branch will be merged with Westlands. Moi Avenue will also be merged with Queensway House and Nakumatt Meru with Meru Town branch.
On the other hand, the Kawangware branch will be moved to Lavington, Wundanyi to Voi and Rahintullah to Bunyala. Customers were advised to also do their banking via Barclays’ mobile and online banking platforms at any Post Office countrywide.
The shut down of the branches will, however, not affect employees, the lender said. “Colleagues working in these branches will be redeployed based on available opportunities and matching competency skills, including the opportunities created by the ongoing Voluntary Exit Scheme. There will therefore be no redundancies as a result of this exercise,” Barclays had said in an earlier statement in July when it first revealed the planned consolidation.
The bank had earmarked to shed off about 160 staffers.
Last month, the bank indicated its net profits fell to Ksh3.5 billion in the period ended June 30, 2017, compared to Sh4 billion same period last year, translating to a 13% decline.
This was mainly attributed to a reduction in revenue as total interest income reduced by Ksh766 million in the period under review to hit Ksh13.1 billion from Sh13.9 billion recorded same period last year amid an interest rate capping regime. Non-Interest income also recorded a 14% decline in the period under review to post Ksh4.3billion from Ksh5.1 billion same period last year.