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Barclays profit grows 7.7pc on govt securities

BBK

Barclays Bank of Kenya has posted a 7.7 per cent increase in profits after tax riding on higher returns from government securities. Photo/FILE

Barclays Bank of Kenya has posted a 7.7 per cent increase in profits after tax riding on higher returns from government securities.

The bank announced a net profit of Sh8.74 billion for the full year 2012 compared to Sh8.11 billion an year earlier.

Despite the increase in profits the bank’s shareholders will receive a dividend of one shilling for each share held a drop from last year’s Sh1.50 per share.

Faced with a slow growth in uptake of loans the lender invested more in government securities, an extra Sh10 billion, which saw its interest income from Treasury bonds and bills grow to Sh4.3 billion from Sh3 billion while other interest income which majorly captures gains made from trading the bonds and bills rose by 89.4 per cent to Sh1.6 billion.

Barclay’s loan book grew by 5.1 per cent to Sh104.2 billion. The lender’s non-performing loans dropped to Sh3.8 billion from Sh5.5 billion which is against the industry trend indicating intense debt collection efforts from the bank and caution in lending.

Customer deposits went up by 11 per cent to Sh137.9 billion. The bank continued to put a lid on costs with operating expenses growing by less than one per cent.

Barclays Bank shares are currently trading at Sh16.50 each at the Nairobi Securities Exchange.