22 February 2011
Barclays Bank of Kenya Ltd (“Barclays Kenya”) today announced a 51% increase in profits for the year ended 31 December 2010. The record profits of Kshs 13,553 million (2009: Kshs 9,002 million) was boosted by a Kshs 3,544 million gain from the sale of its custody business. Total income increased by 11% to Kshs 26,023 million (2009: Kshs 23,397 million).
Commenting on the results, Mr. Adan Mohamed, Managing Director, said:
"Barclays strong financial performance was largely driven by revenue growth, and tight management of operating costs offset by an increase in impairment for non performing consumer loans. There also was a one-off restructuring charge on recently announced staff restructuring exercise."
"We enhanced our customer value proposition, targeting corporate and business banking as well as local and consumer businesses. Our ability to reach customers and serve them better was strengthened with new products and additional channels, including Internet Banking which compliments our Hello Money mobile banking service and is supported by our 24/7 Contact Centre," said Mr. Mohamed.
Highlights of the financial results for Barclays Kenya:
- Profit before tax up 51% to Kshs 13,553 million (2009: Kshs 9,002 million). Underlying
- Total income up to Kshs 26,023 million (2009: Kshs 23,397 million)
- Provisions for loan impairments up to Kshs 1,199 million (2009: Kshs 512 million), reflecting impact of a maturing retail loan portfolio
- Total operating expenses, excluding one off restructuring costs of about Kshs 800 million, increased by 1% to Kshs 14,048 million.
- Total assets strengthened to Kshs 172,415 million (2009: Kshs 164,875 million)
- Stable customer deposit base at Kshs 123,826 million
- Growth in shareholder value with earnings per share at Kshs 7.80 (2009: Kshs 4.50)
In addition to the record financial performance in 2010, Barclays during the year successfully implemented a new banking technology platform that will significantly improve the Bank’s interaction with customers and enhance its operational efficiencies.
The Board of Directors resolved to recommend to shareholders a final dividend of Kshs. 4.70 per share, bringing the total dividend payout to Kshs. 5.45 per share for the year, up 118% on 2009. At the same time, subject to shareholder and regulatory approvals, the Board resolved to recommend to shareholders a share split of 4 for every 1 of the existing ordinary shares held, making Barclays shares more available on the Nairobi Stock Exchange.
Looking forward, Mr. Mohamed said: "We remain optimistic about opportunities ahead and having made the necessary investments in technology, people, and our distribution network during the last three years, we have an unparralled advantage to propel our growth into the future."
Mr. Mohamed concluded by thanking the Board, regulators and all Barclays employees, as well as Barclays valued customers for the support they continue to lend over the years.