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

Barclays Bank of Kenya Ltd has posted  a pre Tax profit of Ksh 7.71 billion for the period ending 30  compared to Ksh 8.71 billion in 2016.

The bank posted a 5 percent growth in the customer loans to Kshs.167 billion driven by a 5 percent and 8 percent growth in the Consumer bank and SME bank businesses respectively.

Customer deposits grew by 11 percent to Kshs.200 billion mainly driven by transactional accounts following the launch of new products such as the Twin Account. The transactional accounts balances accounted for 71 percent of the deposits up from 61 percent in the previous period; this resulted in the average cost of funds dropping to 2.4 percent.

Performance for the period was however impacted by a 4 percent decline in net interest income to Kshs.16.1 billion resulting in an 8 percent reduction in total revenue to Kshs 22.6 billion attributed to the impact of the interest rates’ law that resulted in yields on interest earning assets declining from 14.2 percent to 12.6 percent and net interest margin (NIM) dropping to 9.3 percent from 10.0 percent in September 2016.

“This year has presented us with a multiplicity of challenges on the macroeconomic and political fronts which have had a direct impact on our revenues. The prolonged electoral period has presented a climate of uncertainty which has been challenging for businesses whilst the interest rates law continues to undermine our interest income. We are however optimistic that both of these situations will be resolved soon,” said Jeremy Awori, Managing Director, Barclays Bank of Kenya.