Barclays Kenya 2016 full-year profits dips 10pc to Kshs 10.8 billion

By David Indeje On February 22, 2017


Barclays Bank of Kenya said on Thursday its pre tax profit dipped by 10 percent to Ksh 10 billion for the period ended 31st December 2016 driven by an impressive 16 percent growth in its loan book.

This is compared to 2015 full-year net profit that was marginally unchanged at Sh8.4 billion from Sh8.38 billion in 2014.

Barclays bank financials

Total Revenue

Revenue grew by 8% to Kshs. 31.7 billion on the back of strong performance of new income lines, such as bancassurance, fixed income trading, and customer assets which recorded a 16% growth. 

Net Interest Income

Net interest income grew by 9% to Kshs.22 billion, up from Kshs.20 billion in 2015. This was driven by a growth in interest earning assets despite the pressure of declining net interest margins due to the regulation of interest rates.

Non-Interest Income

BBK Net Intrest icome

Non Funded Income grew by 3% largely supported by Bancassurance, FX income and Fixed income Trading, proof that the bank’s diversification strategy is on course.

 Customers Deposits

Customer deposits grew by 8% to Kshs.178 billion with significant contribution coming from savings and transactional accounts which make up 80% of our deposits (79% in 2015). Business Banking and Corporate segments recorded double digit growth in the period under review.  

BBK Customer deposits

Costs

Costs went up by 8% from Kshs.16 billion to Kshs.17 billion due to inflationary adjustment on staff costs and increased investments in technology, new channels such as agency banking and the refurbishment of existing channels (branches and ATMs) to deliver excellent customer experience.

The cost to income ratio remained steady at 53%. We continue to manage our costs effectively as we create efficiencies.

About David Indeje

David Indeje is a writer and editor, with interests on how technology is changing journalism, government and society. He has been practicing Journalism since 2008. Environment, Agriculture Business, Health and Gender Development stories are his passion.


David can be reached on: (020) 528 0222
or
Email: [email protected]