Key Highlights for FY 2014:
Net operating income increased to KES 28.3bn compared to KES 27.9bn in 2013 on the back of growth in net interest income.
- Effective cost management led to a 6% reduction in operating costs to KES 14.6bn
- Loans and advances to customers grew by 6% to close at KES 125bn.
- Net non-performing loans rate stood at 3.5% due to strong risk management.
- Customer deposits stood at KES 165bn, representing a 9% growth YoY.
Strong capital and liquidity position maintained.Barclays Bank of Kenya today reported a 10% increase in profit before tax of KES 12.3 billion for the year ended 31st December 2014 up from KES 11 billion recorded the previous year. Barclays Bank of Kenya Managing Director, Mr. Jeremy Awori says, “We have dedicated a significant portion of resources over the past two years towards improving our systems and diversifying our product portfolio in order to provide end-to-end financial solutions and enhance our customer experience.”
“We have also introduced new revenue generating streams such as bancassurance, SME, fixed income trading, investment banking, stock brokerage and revamped existing businesses such as our mortgage offering and asset based financing to support future growth,” he added.
“We have managed to keep our cost income ratio stable year on year, despite the significant investments which we have made to set up new businesses, roll out new systems, enhance existing technology and acquire key talent,” Awori concludes.
Net interest income increased by 4% to KES 19.6 billion, up from KES 18.9 billion for the comparative period last year. This was on the back of growth in interest-earning assets despite the pressure of declining interest rates.
Non-interest income was 4% lower at KES 8.7 billion compared to the same period in 2013. This was mainly attributed to a non-recurring mark-to-market gain in 2013 in relation to the bank‟s equity investment in VISA shares. The shares were subsequently disposed of in 2014.
The total capital to risk weighted assets for the bank as at end of 2014 was 18.6% (before adjusting for dividends) against a regulatory limit of 14.5%. The total capital ratio is sufficient to support business growth in the medium term however the bank will be looking to raise tier II capital to ensure that we have the right balance between tier I and tier II.
The bank‟s Non-Performing Loan (NPL) ratio stood at 3.5% compared to the industry average of 5.4%. The loan loss provision for the year was KES 1.4b, representing 1.1% of total lending (reflecting the quality of assets maintained by the bank).
Liquidity ratios are strong at 44.2%. This is well above the minimum regulatory requirement of 20%. This provides the bank with a solid base to meet customers‟ needs in 2015 and beyond.
The Board is recommending the payment of a final dividend of Kes.1 per share (2013-0.7 per share).
Looking ahead to 2015, Barclays Bank of Kenya is focused on accelerating its financial momentum in strategic growth segments, most notably in SME and Investment Banking. The bank will also increase its focus on non-funded revenue streams to bolster growth. The launch of the mortgage and asset finance centres of excellence is also expected to enhance our customer experience as we build Kenya‟s „Go To‟ bank.
Barclays is a major global financial services provider engaged in personal banking, credit cards, corporate and investment banking and wealth and investment management with an extensive international presence in Europe, the Americas, Africa and Asia. Barclays‟ purpose is to help people achieve their ambitions – in the right way With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs approximately 140,000 people. Barclays moves, lends, invests and protects money for customers and clients worldwide.
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