Companies

Bad loans, fall in revenues drag Barclays earnings down to Sh7.4b

BBK

A Barclays Bank branch on Muindi Mbingu Street in Nairobi: The bank has reported a 11.9 per cent drop in its 2016 net profit. PHOTO | FILE

Barclays Bank of Kenya (BBK) has reported a 11.9 per cent drop in its 2016 net profit as higher provisions for bad debts and thinned revenues on the back of the rate capping law ate into its prospects.

The lender's net earnings stood at Sh7.39 billion as at December last year compared to Sh8.40 billion in the previous period.

The company declared a final dividend of Sh0.8 per share to be paid on April 28, bringing the total payout to Sh1 per share, which the same as last year.

BBK released its full year earnings as news emerged that Barclays Plc, its UK-based parent owner, has reached an agreement with its African subsidiary about the details of their divorce, a key step before the British bank can sell more shares in its Johannesburg-listed offshoot.

The Financial Times of London reported that Barclays Plc and its subsidiary Barclays Africa were awaiting approval from local regulators.