Barclays tops off profit run by big banks

By Jackson Okoth

Barclays Bank Kenya’s pre-tax profit rose 4.7 per cent for the nine months to September 30. The bank recorded a Sh6.6 billion profit, up from the Sh6.3 billion recorded over the same period last year.

Intense trading on the counter preceded the announcement of the bank’s third quarter results, with BBK shares reaching a high of Sh44, before closing at Sh43.25.

The bank said the increase was due to better risk management.

"Going into the year, we faced significant challenges with the slow economic growth. Against this backdrop, we set out to support our customers and to ensure the optimisation of our existing resources, while continuing to invest in new products and capabilities," said BBK Managing Director, Adan Mohamed.

BBK’s strategy, he said, was to grow by expanding its product offering and cutting costs.

"One of the key drivers of our growth in profits was the strong quality of our loan book, compared to previous quarters. We reduced impairments through a continued focus on responsible lending, and by working closely with our customers to help them manage through this downturn," said Mohamed.

BBK is the last of the bigshots in the banking industry to release its third quarter results.

Co-operative Bank reported a 10 per cent growth, KCB recorded one per cent and Standard Chartered reported the highest growth at 46 per cent the highest.

Equity Bank’s pre-tax profit drop, as a slow economy and rapid expansion took its toll on the bank.

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During the third quarter, Barclays extended banking hours at its premier Queensway Branch in Nairobi, and held seminars for small and medium-sized business clients to share best practices in financing, accounting and management.

Barclays Business Club, which caters for small business owners, and is the largest club of its kind in Kenya, facilitated a national trade fair, and organised business trips for members to Singapore, Malaysia, Thailand and China.

Over 140 club members participated in the trips that were endorsed by the Ministry of Trade, forging valuable relationships with potential new customers and suppliers.

"We have delivered a resilient performance in this economic environment and remain profitable, strongly capitalised and well positioned for growth," said Mohamed.

 

 

Read all about: Adan Mohamed

 

 

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