3rd December 2022

Barclays Bank Kenya Half Year 2018 profit up by Ksh 400 Million

Notice: Trying to get property 'post_excerpt' of non-object in /home/khusoko.com/public_html/wp-content/themes/covernews-pro/inc/hooks/blocks/block-post-header.php on line 42

Barclays Bank of Kenya (BBK), a subsidiary of Absa Group Limited has reported a profit after tax of KES 3.8 billion for the period ended 30th June 2018, a growth of 6 percent compared to a similar period last year attributed to a 5 percent growth in total income.

However, the results were “Partially offset by growth of 3 percent and 27 percent in costs and impairment, respectively,” read a statement sent to media. 

In this years’ results:

Customer deposits grew by 15 percent to Kshs.217 billion with transactional accounts constituting 66 percent of the total deposits.
Net Customer loans up 8 percent to close at Kshs.176 billion driven by key focus products-  Scheme Loans, General lending, trade and Mortgages that recorded strong year on year growth. 
Investment in Government securities & dealing securities book increased by 62 percent to Kes 93 billion. 
Total Income increased by 5 percent to Ksh 15.7 billion. Net interest income posted a 4 percent increase mainly driven by growth in government securities book and a strong Deposit growth. 

Add caption

However, analysts observe that the uptick in non-performing loan (NPL) book continues being a concern, with a record high NPL ratio of 7.7 percent in 1H18 from 7.2 percent in 1Q18 and against a 3-year average of 5.4 percent. 
“This is despite the sector signaling a cooling off in NPLs growth, at 12.0 percent in June 2018 from 12.4percentt in April. Gross NPLs rose 13.7percent q/q, a matter we will pursue to understand from management,” observed Genghis Capital Analysts.
In 2017, the bank reported a 17 percent decline in their profit after tax to KES 3.4 Billion down from Ksh. 4 Billion over the same period last year which was attributed to a 5 percent decline in their interest income to Ksh. 13 Billion.

The bank is optimistic that it is well positioned for the future as underpinned by its new 5-year strategy focused on driving Growth, Transformation, and Returns. 

“The Board of Directors of BBK  have resolved to declare an interim dividend for the year 2018 for Shs 0.20 per ordinary share of the company to be paid on or about Friday, October 12, 2018, to shareholders registered at the close of business on Friday, September 7, 2018,” Management said.