Barclays bank of Kenya (Stock; BBK) has released its half year 2017 financial performance.
Major Highlights;
Profit before Tax fell by 11.52% to Sh 5.2 Billion from Sh 5.8 Billion. Net profit also declined by 13.31% to Sh 3.5 Billion.
Net Interest Income fell by 5.05% to Sh 10.5 Billion from Sh 11.1 Billion posted in the first half of 2016. The decline was attributed to a 5.5% fall in interest income to Sh 13.14 Billion as a result of slow growth in income from loans.
The bank’s loan book grew by 6.8% to Sh 163.78 Billion as holdings in government securities increased by 11.50% to Sh 52.65 Billion.
Non-interest income declined by 14.5% to Sh 4.4 Billion mainly due to a 61% decline in fees to Sh 0.32 Billion, other income also fell by 54.2%.
Operating expenses declined by 6% driven by a 33% fall in loan loss provisions to Sh 1.4 Billion.
Non-performing loans grew by Sh 300 Million to Sh 12 Billion.
Shareholders’ funds improved to Sh 41 Billion from Sh 39 as retained earnings grew by 3.5%. Customer deposits increased by 3.2% to Sh 189 Billion from Sh 183 Billion in half year 2016.
The Bank’s board retained an interim dividend of Sh 0.20 per share unchanged from the first half of 2016, this will be paid on 13th October 2017.
