Barclays Kenya Records 12% Profit Growth in Q1

Kenya’s Barclays Bank profit before tax for the first quarter of 2019 hit KSh2.9 billion, a 12 per cent increase from KSh 2.6 billion recorded in the first quarter of 2018. The growth is attributed to a 3 percent rise in total income and a 3 per cent reduction in costs. The bank’s total revenue went up by 3 per cent to KSh8 billion.

Barclays grew its customer deposits by 16 per cent to reach KSh224 billion. The bank revealed that transactional accounts make up 66 per cent of the total deposits. The lender’s loan and advances to customers jumped up by 9 per cent to KSh180 billion.

The bank’s capital ratio is quite strong at 16.5 per cent compared to the required minimum ratio of 14.5 per cent. Its balance sheet reveals a strong liquidity position at 41.1 per cent compared to the 20 per cent liquidity ratio required for banks.

Barclays is well on course in its rebranding journey that will see it acquire the name of its parent company Absa group. The transformation will result in a more digitally driven bank and better service delivery to customers. The bank incurred a KSh243 million one-time expense in the first quarter of 2019. The expense is posted as an exceptional item in the bank’s income statement.