Barclays to up earnings through cost-cutting

By James Anyanzwa

Nairobi, Kenya: Barclays Bank Kenya is seeking to bolster its drive for new and innovative products aimed at enhancing shareholder value.

This will also help the bank re-sharpen its competitive edge in the banking industry.

The Bank’s profit before tax and exceptional items financial results for the three months ended March 31, 2013, increased to Sh3.1billion, reflecting a six per cent growth year on year.

The newly appointed Managing Director Jeremy Awori said the bank has already crafted robust strategy to grow revenues and shore up shareholder earnings in a competitive banking environment.

 “The bank will continue with its approach to build sustainable shareholder wealth through prudent growth in good quality assets and efficient cost management,” Awori told shareholders in Nairobi yesterday.

He observed that enhanced customer experience through development of new products and services would be the bank’s focus this year. Mr Awori, who was speaking during the bank’s 31st Annual General Meeting, said the Kenyan economy was ripe for growth in view of the prevailing favourable interest rate environment.

“The bank will play its role in lending to customers wishing to grow their business,” he said. Awori said the bank would also strive to improve productivity through investment in technology.

Shareholders approved a final dividend of 70 cents per share, which when taken together with the interim dividend of 30 cents per share paid in October 2012 brings the total dividend payout for the year to Sh1 per share.

 Higher earnings

This represents a 11 per cent growth from the underlying dividend (excluding the special dividend) of Sh0.90 (90 cents) per share paid in 2011. The bank’s profit before tax for the year 2012 increased eight per cent (Sh1 billion) to Sh13 billion from Sh12 billion in the previous year driven by growth in interest income.

The bank grew its interest income by 19 per cent to Sh21 billion in 2012 from Sh17.6 billion in 2011.