[Kenya] Barclays Bank of Kenya Reports 11% Increase in Net Profit
Barclays Bank of Kenya has announced a net profit of KES6.2bn forthe nine months ended30 September 2014. This represents an 11% growth in net profit compared to the same period last year. The result is mainly due to growth in interest income supported by the bank’s strategic focus to grow the balance sheet.
Key highlights for the nine month period were:
- Total interest income grew by 8% to KES17bn on the back of growth in interest earning assets and better margin management.
- Total assets rose by 8% to KES219bn (2013: KES202bn).
- Net customer assets increased by 9% to KES126bn (2013: KES116bn).
- 11% growth in customer deposits to KES153bn (2013: KES138bn).
- Capital adequacy ratio remained solid at 16.5% against a regulatory limit of 14.5%
Commenting on the results, the Barclays Bank of Kenya Managing Director, Mr. Jeremy Awori said:‘Our growth in profit was boosted by the successful execution of our business agenda coupled with steady balance sheet growth which will deliver future income to the bank. This was in turn complemented by prudent cost management and an acceleration of our innovations agenda.’
‘In addition, new market firsts such as the Zidisha Bonus Savings account and the ZidishaSalo bundled account, which includes features such as retrenchment cover and unsecured lending of up to KES6m, have helped to augmentour competitive edge,’he said. ‘These innovations are a demonstration of our stated purpose as a bank which is to help people achieve their ambitions in the right way.’
‘Barclays Bank of Kenya’s focus for 2014 is about accelerating growth. Based on these numbers and the sound fundamentals which we continue to deliver, we are confident that our plan to become one of Kenya’s top three banks by revenue by 2016 is on track,’ he concluded.
Other highlights include:
Net interest income increased by 5% to KES14.7bn up from KES14bn for the same period last year. This was on the back of growth in interest earning assets despite the pressure of declining interest rates.
The capital adequacy ratio for the bank as at end of September was 16.5% which was higher than the 14.5% prescribed by CBK andthe bank is well capitalised to support future balance sheet growth.
At 40%, liquidity ratios are strong compared to the regulatory minimum of 20%. This position provides Barclays Bank of Kenya with a strong base to meet its customers’ needs for the rest of the year and beyond.
Looking forward to the rest of the year and beyond, Barclays Bank of Kenya is focused on continuously improving services to its customers through innovative products whilst maintaining a high quality asset book all geared towards making Barclays Bank of Kenya the country’s ‘Go-To Bank’.