Barclays Kenya net profit fell 13 per cent to Sh3.7 billion in the first half of the year, weighed by a Sh788 million expenditure on retrenchment of 170 workers.
The lender grew its loan book by six per cent to Sh107 billion and mobilised cheap deposits leading to net interest income of Sh9.2 billion compared to Sh8.9 billion in June last year.
The bank deposit base stood at Sh138 billion up from Sh122 billion a year ago.
“The results were affected by a one-off restructuring expense which will help us manage our staff costs; which is our biggest expense,” said Jeremy Awori, chief executive of Barclays Kenya.
“The first half of 2013 was affected by subdued demand for credit in view of the general election and a drop in the interest rate environment.”
The bank’s staff costs was flat at Sh3.8 billion, with the management saying the figure would have been higher were it not for the voluntary early retirement exercise.
Barclays’ volume of bad loans dipped by 12.7 per cent to Sh3.9 billion, defying an industry wide trend which saw total non-performing loans increase by 10 per cent as at the end of June.
It had cut its interim dividend pay-out by a third to Sh0.20 per share; compared to Sh0.30 per share in 2012.
Barclays’ stock was quoted at Sh17.40 on Tuesday 0900 GMT; a drop of Sh0.05 compared to Monday’s average closing price at the Nairobi bourse.