Barclays net profi t declines 13 per cent in half year report

Barclays Bank of Kenya, the country’s fifth largest lender by market share posted a 13.45 per cent decline in after-tax profits, the bank reported yesterday.

As at June 30, the lender’s net profit stood at Sh3.5 billion compared to Sh4.09 billion in the same period 2016.

The bank said that the performance was impacted by a 4.96 per cent decline in net interest income to Sh10.54 billion from Sh11.09 billion during the same period last year.

Managing director Jeremy Awori said the results demonstrated the lender’s resilience in a challenging operating environment characterised by tough macro-economic conditions and effects of the law capping interest rates. Customer loans and advances rose 6.84 per cent to Sh163.78 billion from Sh153.30 billion last year while deposits grew 3.16 per cent to Sh188.65 billion from Sh182.88 billion in June 2016.

During the period under review gross non-performing loans jumped 36.87 per cent to Sh11.9 billion from Sh8.76 billion resulting in a 37.14 per cent growth in loan loss provisions to Sh4.98 billion from Sh3.85 billion last year.

In May last year, parent company Barclays PLC of London released 12 per cent of its stake in the market and agreed to pay Barclays Africa nearly $988 million (about Sh102.51 billion) to fund the firm’s split from its African business.

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Written by Daily Nation

The Nation Media Group (NMG) founded by His Highness the Aga Khan in 1959 has become the largest independent media house in East and Central Africa. It has been quoted on the Nairobi Stock Exchange since the early 1970s.

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