The bank described the period as marked by harsh economic conditions, political uncertainties and the impact of interest rates caps.
Lender blames interest rates caps for a four per cent decline in net interest income.
The lender however posted a five-per cent growth in the customer loans to Sh167 billion.
Barclays Kenya's #ticker:BBK Group net profit fell 12 per cent in the first nine months of the year compared to the same period last year.
The lender’s after-tax profit stood at Sh5.3 billion, down from Sh6.1 billion last year, according to results released Wednesday evening.
The bank noted that performance for the period was impacted by a four per cent decline in net interest income to Sh16.1 billion resulting in an eight per cent reduction in total revenue to Sh22.6 billion.
“This is largely due to the impact of the interest rates’ law that resulted in yields on interest earning assets declining from 14.2 per cent to 12.6 per cent,” the bank said in a statement accompany the results.
The bank described the period as marked by harsh economic conditions, political uncertainties and the impact of interest rates caps that came into force in September 2016.
“This year has presented us with a multiplicity of challenges on the macro-economic and political fronts which have had a direct impact on our revenues. The prolonged electoral period has presented a climate of uncertainty which has been challenging for businesses whilst the interest rates law continues to undermine our interest income,” said Jeremy Awori, Managing Director of Barclays Bank Kenya.
The lender however posted a five-per cent growth in customer loans to Sh167 billion, mainly driven by a five-per cent and eight-per cent growth in the consumer bank and SME bank businesses respectively.
Customer deposits grew by 11 per cent to Sh200 billion mainly driven by transactional accounts following the launch of new products such as the Twin Account.
The transactional accounts balances accounted for 71 per cent of the deposits up from 61 per cent in the previous period, resulting in the average cost of funds dropping to 2.4 per cent.
