Barclays Bank Kenya net profit rises 7pc to Ksh 6.926 billion

David Indeje is Khusoko’s Digital Editor, covering East African markets.
Barclays Kenya Confirms Probe into $20 Million in Fake Currency

Barclays Bank Kenya has posted a 7% Profit After Tax (PAT) growth driven by a balance and market share perspective through its non-funded income according to its Chief Finance Officer.

Its pre-tax profit in 2018 rose to Ksh 10.65 billion from Ksh 10.36 billion a year earlier and its profit after tax rose to Ksh 7.416 billion from Ksh 6.926 billion in 2017

Non-funded income rose 15% to 9.7 billion and net interest income increased 1%  to Ksh 21.99 billion shillings.

“The business delivered a strong performance in 2018. The board is pleased.” Charles Muchene, Chair Board of Directors.

Barclays Bank of Kenya Managing Director, Jeremy Awori, said the financial year under review marked the first year of execution of a growth and transformation strategy.

“2018 was a strong year for our business. We recorded the fastest growth in a decade on some key performance metrics, a testament that our strategy is delivering results and that our collective efforts are yielding positively,” said Awori.

He said costs were well managed at Sh17.2 billion reflecting 2% increase year on year, below inflation.

“These costs were inclusive of investments incurred to meet the Voluntary Exit Scheme program as well as the separation costs from the ongoing brand and name change activities. Adjusted for this, the bank recorded a 2%drop in costs for the period,” added Awori.

Other highlights of the financial results include:

Total assets grew by 20% to stand at Ksh. 325 billion.
Customer deposits grew by 12% to Ksh. 207 billion with transactional accounts constituting 68% of the total deposits.
Net customer loans grew by 5% to Ksh. 177 billion
Investment in government securities increased by 37% to Ksh. 93 billion.
Total income increased by 5% to Kshs 31.7 billion. Non-funded income went up by 15% year on year was driven by growth in foreign exchange earnings, Bancassurance income and bond trading income.
Total Revenue growth at 5% to Kshs 31.7 billion
Profit after tax growth at 7% to Kshs 7.4 billion
Capital ratio at 16.4% against a regulatory limit of 14.5%
Liquidity ratio of 35.7% against the regulatory minimum of 20%

The BBK Board recommends a dividend pay-out by 10% to Ksh 6 billion.

David Indeje is Khusoko’s Digital Editor, covering East African markets.

In my role as Community Engagement Editor For Khusoko, I care about our audience. engaging them, getting news delivered to them across a variety of platforms, and expanding the diversity of voices on our website.

Leave a comment
scroll to top