03 August 2011

Barclays Bank of Kenya Limited (Barclays Kenya) announced its interim results for the six months ended 30 June 2011. Barclays Kenya’s profit before tax increased by 13% to Kshs 5,346mn (2010: Kshs 4,749mn).

Highlights of the financial results for Barclays Kenya:

  • Profit before tax increase of 13% to Kshs5.346bn
  • Operating expenses declined by Kshs 1 billion compared to the same period last year
  • Balance sheet strengthened with total assets of Kshs 176.5bn (2010:Kshs 173.0bn)
  • Net customer asset growth of Kshs 4.7bn in first 6 months of 2011
  • Stable customer deposit base of Kshs 128bn
  • Provisions for loan impairments down 44% to Kshs 393mn (2010: Kshs 702mn)
  • Earnings per share stable at Kshs 0.67 (restated basis following share split, 2010: Kshs 0.68 EPS)
  • Half year interim dividend of Kshs 0.20 per share (restated for 2010: Kshs 0.19 dividend per share)

Comments on Barclays Kenya half year financial performance by Mr. Adan Mohamed, Regional Managing Director – Barclays East and West Africa:

Resilient performance:
"We have delivered strong profit growth in the wake of increased pressure on margins and challenging macro economic environment. We have seen a marginal reduction in total income reflecting a change in mix between customer loans and government securities."

Greater efficiency, excellent risk management:
"Operational efficiency following investments in IT has resulted in a significant drop in our operating expenses; this has resulted in staff cost savings."

"We maintained our focus on strong risk management, in a high inflation and interest rate environment, which has seen our loan loss provision come down from Kshs 702mn in 2010 to Kshs 393mn in 2011. Our loan portfolio continued to demonstrate excellent quality with a steady decline in net non performing loans."

Increased returns through business integration:
"All these efforts re-emphasise our priority to maximize returns to our shareholders through greater operational efficiency; better risk management; deeper client relationships and superior customer service."

Looking forward, Mr. Mohamed expressed caution as the economy enters into a period of high inflation and an interest rate environment which may impact businesses in the coming months. "This market environment will see Barclays Kenya focus on building a more integrated business as we seek to deliver value to our customers."

On 02 August 2011, Barclays Plc announced its Interim Financial Results to the market, covering performance to 30 June 2011. The full report can be accessed at www.barclays.com/investorrelations