Barclays posts Ksh3.8bn six month profit

Barclays Bank Kenya has announced a six percent growth in profits for the first half of the year to Ksh3.8 billion for the period ending June 30 2018.

The bank attributes the result to a five percent rise in gross revenue which hit Sh15.7 billion buoyed by growing customer deposits and loans which totaled Ksh217 billion and Ksh176 billion respectively for the first six months of the year.

Investment in government securities similarly paid dividends for the lender with a 62 percent increase in income to Ksh93 billion.

Barclays managed to keep its overall operating costs well below the three percent increase in year on year inflation at Sh8.7 billion despite extra provisions in investments to meet the Voluntary Exit Scheme (VES) program.

This, a four percent decrease in costs when compared to the corresponding 2017 review period attributable to automation initiatives by the bank in addition to investments in alternative channels and branch rationalization programs.

Barclays has also ascribed the surplus to innovation, a factor expected to drive the financier into the future under the new and expected brand, ABSA Kenya Plc.

“The bank launched a number of exciting products during the period under review including the Barclays signature credit card and its new virtual banking proposition, Timiza. Timiza has recorded impressive market reception having hit the two million customer mark in just 130 days,” Barclays chief executive officer Jeremy Awori said.

“Barclays Kenya is well positioned for the future as underpinned by our new five-year strategy which is focused on driving growth,” he added.

The board of directors of Barclays Kenya has declared an interim dividend of Sh0.20 per share.