Barclays Bank of Kenya yesterday released their half year results in which they reported a 17% decline in their profit after tax to Ksh. 3.4 Billion down from Ksh. 4 Billion over the same period last year.
The decline in their profit was informed by a 5% decline in their interest income to Ksh. 13 Billion. Interest income from loans and advances remained constant at Ksh. 10 Billion. Non-interest income also declined by 19% to Ksh. 4 Billion down from Ksh. 5 Billion in 2016. This was to a large extent due to a 61% drop in the fees and commission attributed to loans as interest rate cap law continued to bite the banking sector’s earnings.
During the period, the bank’s operating expenses dropped by 7% to Ksh. 9.7 Billion. This was mostly due to a 33% drop in the loan loss provision to Ksh. 1.3 Billion down from Ksh. 2 Billion in 2016. This drop was attributed to enhanced efficiency on collections and recoveries.
Loans and advances to customers grew by 6% to Ksh. 163 Billion on the back of growth in their SME loan book. The bank also increased its investment in government securities to Ksh. 52 Billion up from Ksh. 47 Billion in 2016.
The board declared an interim dividend of 0.20 per share that is to be paid by 13th October 2017.