Business News
Barclays profit up to Sh6.6bn
Barclays bank of Kenya limited Managing Director Adan Mohamed addresses the media at a past function. PHOTO/ FILE
In Summary
- Bank attributes the 4.2 per cent increase in earnings to slow economic growth
Barclays Bank of Kenya has returned a 4.2 per cent growth in pre-tax profit for the nine months ending September 30, 2009, reflecting the impact of the economic slowdown on various sectors of the economy.
The downturn, which has hit the banking sector hard with most players recording single digit profit growths, saw Barclays Bank’s earnings increase from Sh6.3 billion it registered over the same period in 2008 to Sh6.6 billion this year.
This came as the bank’s customer deposits declined by 7 per cent from Sh132.4 billion recorded last year to Sh123.1 billion in 2009.
“Going into the year, we faced significant challenges with the slow economic growth. Against this backdrop, we set out to support our customers and to ensure the optimisation of our existing resources, while continuing to invest in new products and capabilities,” said the bank’s managing director Adan Mohamed.
Product range
He said they are realising their strategy of achieving quality growth through a focus on their product range, tight portfolio management, as well as operational excellence.
The cautious approach and risk management employed by the sector during the period under review saw the bank cut its loans and advances to customers by 3.8 per cent to Sh10.2 billion this year.
The bank’s operating expenses excluding provisions for loan loss remained broadly flat at Sh10.1 billion compared to Sh10 billion in 2008.
“One of the key drivers of our growth in profits was the strong quality of our loan book compared to previous quarters. We reduced impairments through a continued focus on responsible lending and by working closely with our customers to help them manage through this downturn,” said Mr Mohamed.
During the quarter, Barclays enhanced its services to both retail and commercial customers.
It extended banking hours at its Queensway Branch in Nairobi and held seminars for small and medium-sized business clients to share best practices in financing, accounting and management.
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