NAIROBI, Kenya, Sep 8 – Barclays Kenya has maintained that it will conclude its transaction to Absa by June 2020, after eight of the nine banks in Africa already switched to Absa in July 2018.
This comes after the bank’s Managing Director, Jeremy Awori, said the shift to the new name has gained momentum and the transition is about 65 percent complete.
“Our transition journey to Absa has now gained momentum and is about 65% complete. We are making significant investments in technology, branch modernization, and branding, which will ultimately enable us to give our customers a better banking experience,” Awori said.
The name change signals the start of a new era for the group as a stand-a-lone African banking group with deep roots on the continent and more than 100 years of experience in Africa’s banking sector.
The group name and brand change set in motion one of Africa’s largest re-branding programs as eventually all Absa and Barclays ATMs, forms, branches, stationery, platforms and other assets across 12 countries will be updated with the new Absa brand design.
While presenting their half-year 2019 results, the bank announced that it had invested Sh561 million in key projects such as technology upgrades, brand modernization, and brand initiatives.
The bank registered a lean 2.6 percent growth in profits for the first six months of 2019 to Sh3.9 billion, compared to Sh3.8 billion that was recorded in the same period last year.
This has been attributed to the bank’s additional investments brought about the transition process from Barclays to ABSA Group.
The transition period has also forced the bank to incur additional costs of Sh560.8 million summing up the total cost of the transition to Sh804.2 million.
Over the years, the bank has also seen its customer numbers increase to over 4 million with innovations like Timiza.
The group’s profits also increased by 13 percent which it says this was the fastest growth it has witnessed in 7 years.