Our Diversification Strategy is Working –Barclays Kenya CEO

By David Indeje / February 28, 2017 | 10:49 am



Barclays Bank of Kenya Records Pre tax profit of Ksh 7.71 Bn in Q3 2017

Barclays Bank of Kenya Chief Executive Officer Jeremy Awori has expressed confidence that the institution’s balanced strategy for both top- and bottom-line growth to deliver strong shareholder returns is paying off.

“Our diversification strategy is working. Our revenue growth is coming through and we want to accelerate that revenue growth by investing in other areas that provide opportunities – bank assurance, SMEs, asset and corporate,” said Awori to the media after the bank released its Financial Results for 2016.

“We are investing heavily in the automation and digitization of our systems, processes and solutions in a bid to make our institution more efficient as well as to provide our customers with convenient access to our solutions at an affordable rate,” added Awori.

BBK diversified balance Sheet

During the reporting period, the bank’s performance was however, impacted by an increase in impairment as well as the implementation of the Banking Amendment Act in Q4 which caused heightened job losses resulting in higher than usual default rates especially in unsecured personal loans.

BBK impairment approach

Awori notes that this will not deter their focus.

“Continue to focus around where we take our risks where you lend and where you don’t lend and make sure you get a return on your lending. That has been a challenge, because before you could price on your risk now with the cap it is quite difficult because you cap just how much you can price that risk.

So the riskier customers are difficult to bank in this environment just because you cannot get that return for the delinquency and impairment that may come through banking that segment. So, we continue to look at where we see that opportunity where we shall get good return.”

 Investing KSh 300 M in Technology

Awori discloses that they have instituted corrective measures to contain impairment and they are beginning to bear fruit.

“We have invested in people, processes and systems to manage our impairment better One of the key things I noted since joining the bank was that the institution had underinvested in technology both towards innovation and the infrastructure that powers our operations.

 

We made a conscious choice to say, it is like having a house with a weak foundation. A lot of our investments have been around unsexy parts of technology. Changing computers, servers, routers, using more cost-effective equipment. Our current technology could not allow us to innovate, where we create solutions and plug them into our ecosystem. The refresh of our IT assets and technology such as ATMs places us ahead and will play a crucial role going forward.

BBK Core pillars

That brings a better customer service. People can now deposit money 24 hours a day at their convenience, so, those to me are around offering a service and keeping your customers.”

“It is a competitive world, if you don’t disrupt yourself, someone else will do that, you better disrupt and retain some measure of control,” he emphasizes on the course the bank has taken.

Awori is also optimistic about the prospects of the Kenyan economy going forward besides the 2017 General Elections.

He says,” We are however working with different groups to try and ensure that we have peaceful elections, this I believe will help build confidence in Kenya as an investment destination. We simply cannot be working with a five-year investment horizon where you basically make your money between now and the next election as you don’t know what will happen after. In other markets elections come and go but businesses continue to operate as such we are looking at the leaders on both sides to be responsible during this period because in the end it will be better for the economy. Elections is one of the many factors that affect the industry and as such Barclays will stick to its five-year plan.”

Related: National Bank to Issue Smart Card to Architects and Quantity Surveyors Body





About David Indeje

David Indeje is a writer and editor, with interests on how technology is changing journalism, government, Health, and Gender Development stories are his passion. Follow on Twitter @David_IndejeDavid can be reached on: (020) 528 0222 / Email: info@sokodirectory.com

View other posts by David Indeje


More Articles From This Author







Trending Stories










Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE



ARCHIVES

2020
  • January 2020 (272)
  • February 2020 (310)
  • March 2020 (390)
  • April 2020 (322)
  • May 2020 (336)
  • June 2020 (67)
  • 2019
  • January 2019 (253)
  • February 2019 (216)
  • March 2019 (285)
  • April 2019 (254)
  • May 2019 (272)
  • June 2019 (251)
  • July 2019 (338)
  • August 2019 (293)
  • September 2019 (306)
  • October 2019 (313)
  • November 2019 (362)
  • December 2019 (320)
  • 2018
  • January 2018 (291)
  • February 2018 (219)
  • March 2018 (278)
  • April 2018 (225)
  • May 2018 (238)
  • June 2018 (178)
  • July 2018 (256)
  • August 2018 (249)
  • September 2018 (256)
  • October 2018 (287)
  • November 2018 (284)
  • December 2018 (185)
  • 2017
  • January 2017 (183)
  • February 2017 (194)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (190)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (165)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (245)
  • June 2016 (182)
  • July 2016 (271)
  • August 2016 (248)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (108)
  • May 2015 (116)
  • June 2015 (120)
  • July 2015 (148)
  • August 2015 (157)
  • September 2015 (188)
  • October 2015 (169)
  • November 2015 (173)
  • December 2015 (207)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950