NAIROBI, Kenya, Mar 11 – Barclays Bank of Kenya has announced a profit of Sh7.4 billion for the period ended 31st December 2018, a growth of 7 per cent compared to the previous year attributable to a cost saving and new business units strategy.
During the period, customer deposits grew by 12 per cent to Sh207 billion as customer loans and advances were up 5 per cent to Sh177 billion.
Revenue and total assets grew by 5 per cent and 20 per cent to close the year at Sh31.7 billion and Sh325 billion respectively.
Barclays Bank of Kenya Managing Director, Jeremy Awori, said the financial year under review marked the first year of execution of a growth and transformation strategy.
“2018 was a strong year for our business. We recorded the fastest growth in a decade on some key performance metrics, a testament that our strategy is delivering results and that our collective efforts are yielding positively,” said Awori.
He said costs were well managed at Sh17.2 billion reflecting 2 per cent increase year on year, below inflation.
“These costs were inclusive of investments incurred to meet the Voluntary Exit Scheme program as well as the separation costs from the ongoing brand and name change activities. Adjusted for this, the bank recorded a 2 per cent drop in costs for the period,” added Awori.
Non-funded income went up by 15 per cent year on year was driven by growth in foreign exchange earnings, Bancassurance income and bond trading income.
Fees and commissions on load grew by 65.5 per cent buoyed by the bank’s digital lending app, Timiza, which added 3 million users over a nine-month period.
The platform issued over 1.6 million loans worth about Sh10 billion compared to Sh5.8 billion in quarter three of 2018.
Analysts at Genghis Capital expect robust customer deposit growth going forward, attributed to the bank’s recent aggressive focus on the retail and SME banking segments.
“The Sh1.10 total dividend payment translates to a dividend yield of 9.5 per cent, which should be very attractive for income investors, with the highest dividend yield in our coverage,” said Genghis.