Barclays Kenya posts Ksh13B Profit for the year ended 31st December 2012

Barclays Plaza,   Nairobi

Barclays Bank of Kenya Limited (Barclays Kenya) has announced its financial results for the full year ended 31st December, 2012. The Bank’s profit before tax increased by Ksh1bn to close at Ksh13B reflecting an 8% growth year on year. 

Highlights of the financial results include: 

·                     Total income 4 per cent growth to reach Ksh27.4bn, on the back of growth in interest earning assets and better margin management.

·                     Operating costs increased marginally by 5 % to Ksh14.2bn

·                     Loan impairment charges down 80% to Ksh144m, compared to Ksh729m recorded in 2011

·                     Growth in shareholder value with earnings per share at Ksh1.61 compared with Ksh.1.49 in the same period last year

·                     Total assets increased by 11% to Ksh185b (2011: Ksh166b)

·                     An 11% growth in customer deposits to close at Ksh138b

Speaking at the function Mr. Adan Mohamed, the outgoing Managing Director, expressed his satisfaction with the results, steady progress the Bank has made over the years and specially thanked the Bank’s team for their dedication and efforts in achieving the impressive results. He also hailed the Bank’s customers for their continued support and the confidence in Barclays bank.

We're proud of the hard work our entire team has done to address the challenges in 2012 while providing a superior customer experience, which has enabled us to retain and expand relationships with our staff, shareholders, customers, regulators and communities we operate in. said Mr Mohamed.

He further noted 2012 to have been a year of transformation for the Bank with emphasis on product innovation and stronger levels of customer service; all key in realizing its One Africa strategy. He opined the Bank’s heavy investment in new technology service capabilities aimed at offering value to its customers and positioning the bank to continue competing effectively in the market.

Business performance and future outlook

Income Growth: 

Total income has grown to Ksh27.4b up from Ksh26.3b. The biggest contributor of this growth came from net Interest income growth of 11% from Ksh16.3b in 2011 to Ksh18.1b in 2012. This is as a result of growth in Loans and advances while at the same time managing the cost of funds.

Cost Rationalization:

Operating costs remained under control and increased by a marginal 5 % despite high inflation levels in the first half of 2012. We continue to drive efficiency through investment in technology and improved productivity.

Asset Quality: 

Asset quality continued to remain healthy with gross non- performing assets as of December 2012 dropping to Ksh3.8b from Ksh5.5b in 2011. This reflects a 30% drop in Gross Non performing Loan book. The Loan Loss provision has also reduced by 80% to Ksh144m, a clear indication of the quality of assets that have been underwritten by the bank. 

Capital and Liquidity:

Our core capital ratio remains strong at 22.7% against regulatory minimum ratio of 8%. Our liquidity ratios are also very strong at 46.8% against regulatory minimum of 20%. This rock solid position provides us with a strong base to meet our customer’s needs in 2013 and beyond. These ratios also place the bank in a very good position with the changes expected from the regulators recent guide especially on increased capital buffers and inclusion of market and operation risk in computing capital ratios.

Returns: 

Return on our shareholders equity has remained steady at 30 during the same period last year. This has enabled us to consistently declare dividends year on year. While commenting on the Bank’s impressive performance and future outlook, Barclays Bank new Managing Director Mr. Jeremy Awori said, Barclays Bank of Kenya 2012 full year results demonstrates the continuing progress the Bank is making towards enhancing its core priorities of sustainable income Growth, Returns, Capital and Liquidity. He thanked Adan for steering the bank’s growth in the last 10 years, while committing to build on the success so far. He wished Adan success in his new role as the Chief Administrative Officer for Barclays Africa.

 Over the years financial strength coupled with extensive local and international resources has positioned Barclays as lead provider of financial services while leveraging on established extensive branch network of 119 branches and over 230 ATMs spread across the country.