Barclays profit drop 6.2% amid name change to Absa Group Limited

NAIROBI, KENYA, MAR 1 — Barclays Bank of Kenya profit after tax for the year ended December 31 dropped 6.2 per cent to Ksh6.93 billion, in the wake of a volatile operating environment for lenders in the country.

This is down from a Ksh7.39 billion net profit recorded in 2016, with the lower income reflecting the impact of a tough operating environment in Kenya, occasioned by among others the capping of interest rates which has left banks with meager earnings on loan interests.

The tier one lender, whose parent company Barclays Africa Group has proposed a name change, closed the year 2017 with a loan book of Ksh168.39 billion. This is a slight drop from Ksh168.51 billion in 2016.

The bank’s non-interest income, which include fees and commissions income on loans and advances, foreign exchange trading income and dividend income dropped to Ksh8.46billion, from Ksh9.35 billion the previous year.

It customer’s deposits however increased 4.4 per cent to close at Ksh185.98 billion, from Ksh178.18 billion a year earlier.

Gross non-performing loans and advances increased 9.9 per cent to Ksh12.61 billion from Ksh11.47 billion in 2016.

During the year, the lender reduced its insider loan and advances to close at Ksh11.7 billion, compared to Kh13.1 billion it gave the previous year.

“The Directors note that an interim dividend of Sh0.20 (20 cents) per ordinary share of the Company was paid on October 13 2017. As such, subject to the approval of the shareholders, the directors have resolved to recommend to members at the forthcoming Annual General Meeting a final dividend for the year of Sh0.80 (Sh80 cents) per ordinary share to be paid on or about May 25, 2018,” the company said in its full year financial statement released Wednesday evening.

The dividend will be paid to shareholders registered at the close of business on April 30 2018.

These financial statement from its books, audited by KPMG Kenya, was approved by the board of directors on February 28, 2018 and signed on its behalf by its Chairman Charles Muchene, managing director Jeremy Awori , Chief Financial Officer Yusuf Omari  and Company Secretary Paul Ndungi.

It parent company-Barclays Africa Group has proposed to change its name to Absa Group Limited.

LINK:https://www.exchange.co.tz/barclays-change-name-absa-group-limited/