Barclays Bank Kenya nine-month profit up 26 per cent

By James Anyanzwa

Barclays Bank has recorded a 26 per cent growth in pretax profit for the nine months ended September 30.

The bank’s profit before tax grew to Sh8.8 billion from Sh7 billion recorded in a similar period.

The bank attributed the performance to an aggressive push for revenue and a strategy of containing costs.

During the period under review, the bank’s customer deposits increased from Sh127 billion to Sh135 billion, while total assets rose from Sh176 billion to Sh180 billion.

Net income remained relatively flat at Sh11.9 billion compared to Sh12 recorded in the same period last year.

But loan loss provision dropped 56 per cent to Sh520 million from Sh1.17 billion on account of prudent lending policies, a relentless focus on collections and recovery of previously impaired loans.

Operating expenses excluding loan loss provision went down to Sh10.16 billion from Sh11.55 billion in a similar period last year.

Last year Barclays Bank posted a 51 per cent growth in pre-tax profit for the full year ended December 31. The group’s profit before tax rose to Sh13.6 billion from Sh9 billion in the previous year, buoyed by increased revenues from the sale of custody business (Sh3.5 billion) and bonds valued at Sh800 million.

More convenience

The bank’s underlying profits – excluding the one-offs (proceeds from the sale of custody business and bonds) – rose 20 per cent to Sh10.8 billion.

In the first quarter of this year, Barclays Bank waived levies charged for use of the Bank’s automated teller machines (ATMs) in a move aimed to offer customers more convenience and inclusive banking services. The move gave retail customers an opportunity to carry out free transactions, including cash withdrawals and balance enquiries, at any of the Bank’s 236 ATMs.