Skip to content
Market News

Barclays Kenya MD Confident of Delivering Decent Returns for Shareholders

BY David Indeje · March 6, 2017 07:03 am

Barclays Bank of Kenya managing Director Jeremy Awori has said their clear strategic agenda with a 2017 positive outlook and beyond will result into “decent returns for our shareholders” besides the unpredictable future for financial institutions in the country.

In an interview with the media, Awori said the bank aims to deliver services to all its stakeholders in a predicable manner.

““I believe in 2017 we shall start to feel the full impact of the Banking amendment act as each quarter passes. I am optimistic not pessimistic; we are going to work very hard to deliver to our shareholders and customers,” he says.

“We are confident for the future. We are going to make the right decisions for it. We are not in for short term, but long term,” he added.

Read: Our Diversification Strategy is Working –Barclays Kenya CEO

Asked more about the banking amendment Act to the business, Mr Awori said: “Banks have to demonstrate that they are giving returns that are reasonable and fair for their industry.”

“If banks are not able to show a route for decent returns or shares, we are at the space where we should take an honest reflection around whether that law severed what people thought it is going to serve. What is the direction of travel? We need healthy, strong banks providing the private sector credit to grow the economy across all segments. If that starts drying up, I think our recovering economy will start slowing down, less job creation which has other knock on effects,” he said.

BBK 2017

Consequently, the Kenyan private sector growth stagnated in the month of February with the Stanbic Bank – HIS Markit Purchasing Manager’s Index posting its lowest reading since the inception of the series in January 2014, the latest PMI survey has shown.

At 50.1 in February, down from 52.0 in January, the seasonally adjusted PMI signaled broadly stagnant business conditions. The lowest seen over 38 months of data collection.

“As we pointed out in our previous report, the ongoing drought and decline in private sector credit access will inevitably lead to deterioration in business conditions within the Kenyan private sector. This month’s historic low reading is symptomatic of these risks that we are flagging,” said Jibran Qureishi, Regional Economist E.A at Stanbic Bank.

Read: Declining Private Sector Credit Growth to Impact Negatively on Kenya’s GDP Growth

For Barclays Kenya,” At the end of the day, our goal is to offer decent returns to our shareholders and this we shall do by implementing our set out agenda”.

Analysts project a positive outlook for the institution.

“Barclays Bank will thrive on continued investment in the automation and digitization of systems, processes and solutions in a bid enhance efficiency as well as to provide their customers with convenient access to products and solutions, and revenue diversification with new business lines such as Barclays Financial Services Limited (BFSL) coupled with stronger focus on SMEs and agency banking leveraged by the bank to spur growth,” says Cytonn Investments’ Barclays Bank FY’2016 Earnings Note.

barclays bank of kenya

Genghis Capital on the other hand state, “Though FY16 had impressive performance, we expect the new interest rate environment to curtail loan book growth as banks move towards more risk averse business models. Despite 12% dividend yield coming as positive news to investors, weakened loan book growth is likely to dampen price.”

 

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_Indeje David can be reached on: (020) 528 0222 / Email: info@sokodirectory.com

Trending Stories
Related Articles
Explore Soko Directory
Soko Directory Archives