Barclays Bank Kenya profit declines 10% to Ksh 5.8Bn as Bancassurance earnings jump 275%

Barclays Bank kenya CEO Jeremy Awori
Barclays Bank kenya CEO Jeremy Awori

Barclays Bank of Kenya has announced a 9.5% drop in its pre-tax profit to Ksh 5.8 billion for the period ended June 30 2016. On a positive note, its total revenues during the period grew by 10% to Ksh 16.2 billion while impairment charges increased from Ksh 586 million to Ksh 2billion.

Its lending business increased 15% year-on-year to Ksh. 153 billion on the back of a strong performance by corporate banking and business banking which grew by 38% and 15% respectively.

Net interest income increased by 11% to Ksh 11.1 billion from Ksh 10 billion reported in June last year. Customer deposits grew by 12% to Ksh 183 billion, largely attributed to growth in Retail deposits.

Non Funded Income grew by 7% which accounted for 32% of the bank’s total earnings. The growth was largely supported by Bancassurance and foreign exchange trading which were up 275% and 54% respectively.

The Group’s net Profit came fell by 10% to Ksh 4 Billion compared to Ksh 4.5 Billion reported in June 2015.

Launch of Stock Brokerage Unit & Dividend Declaration

The Bank said it will launch its stock brokerage arm in the second half of the year as part of its diversification strategy saying it aims at boosting customer value proposition and enable it to offer the full suite of financial products under one roof.

The Board approved the payment of an interim dividend of Ksh 0.2 per share, unchanged from that declared in the same period in 2015.

Related; Barclays Bank Kenya Q1 2016 net profit up 3.1%

NSE 20 approaches 3500 Mark, Barclays Kenya Stock hits 7 year low