Capital FM (Nairobi)

Kenya: BBK Posts 17 Percent Rise in After-Tax Profit to Sh1.9 Billion

Nairobi — Barclays Bank of Kenya Managing Director Jeremy Awori has cited its strong capital base and robust liquidity management as the key drivers for its growth strategy as the financial services provider recorded 17 percent growth profit after tax for the period ended March 31, 2014.

The bank registered Sh1.9 billion compared to a Sh1.6 billion during the same period in 2013.

"Despite the almost linear growth rate in previous quarters, the business is now showing a strong profitability trend based on the continuously improving asset quality growth," said Awori.

"The results reflect the commitment of the board and the management to the growth agenda of the bank that is clearly aligned to the three year strategy aimed at delivering the Go-To bank promise to our customers as well as shareholders."

The three year bank strategy which is heavily anchored on the rollout of innovative technology based solutions will see the bank enhance its operational efficiencies to not only guarantee a better operating performance and shareholder return but also enhance the customer experience.

Results Highlights

-Total operating income increased marginally by 1pc to Sh6.8billion, driven by an increase in the net interest income, partially offset by drop in non-interest income

-Net interest income increased by 5pc to Sh4.7 billion, reflecting business growth and relatively stable net interest margin.

-Impairment losses increased by 48pc to Sh401 million, however loan loss rate remained marginal at 1pc

-Healthy Return on Equity at 22.5pc.

-Rock Solid Liquidity position at 41.6pc.

-Growth in customer assets by 8pc to Sh117b, compared to the same period last year.

"Barclays is clearly in an enviable position now as all key parameters continue to improve. While we maintain a positive outlook, we are taking a prudent and pragmatic approach to our plans. Through offering the best services and staying close to our customers, we aim to continue focusing on delivering strong returns to our shareholders," Awori said.

"To drive the envisioned growth, we have set our sights on some significant opportunities for growth in retail, business banking, corporate and treasury segments," he explained.

Early this year, the bank re-launched its business banking portfolio aimed at servicing the commercial and enterprise customers that currently covers a significant portion of the bank's business.

"The key for Barclays Kenya is sustainable growth in customer assets. We will continue to leverage on the opportunities brought about by the integration within Barclays Africa, which we believe will provide even more diversity to our portfolio particularly for the Corporate and Treasury divisions," Awori concluded.

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