Interest income growth boosts Barclays Kenya’s pretax profit - CNBC Africa

Interest income growth boosts Barclays Kenya’s pretax profit


by Trust Matsilele 0

Barclays Bank Kenya's 2014 pretax profit was up 10 per cent. PHOTOS: techmoran

Financial provider, Barclays Bank Kenya has announced a 10 per cent increase in pretax profit for the year ending 31 December 2014.

Its pretax profit rose to 12.29 billion Kenyan shillings in its full year results from 11.92 billion Kenyan shillings for the same period in the previous year. The positive performance has been attributed to its interest income growth.

(READ MORE: Kenya’s Barclays reports 11.7% pretax growth in H1)

The company, which invested 25 million Kenyan shillings in upgrading its network, reported that its total interest income grew to 22.9 billion Kenyan shillings from 21.3 billion Kenyan shillings.

“We have dedicated a significant portion of resources over the past two years towards improving our systems and diversifying our product portfolio in order to provide end-to-end financial solutions and enhance our customer experience,” said the lender’s managing director, Jeremy Awori.

Barclays Kenya's customer deposits increased by nine per cent and stood at 164.8 billion Kenyan shillings, which the lender termed as a flexible and easier availability for attracting lending.

The bank, which has a heavy presence in corporate and retail lending, said its total assets grew to 225.8 billion Kenyan shillings, an increase of 19.1 billion Kenyan shillings.

Awori said that to meet growing demands in the banking sector and to enable Barclays Kenya to work efficiently and grow its market share, it has invested heavily in technology.

(WATCH VIDEO: Barclays Bank Kenya to borrow four billion shillings)

The bank is also planning to release new products this year.

Earlier in the week, the bank announced that it would be offering core banking services and products together with insurance. The lender also launched an Asset Finance Centre of Excellence for the small and medium-sized enterprises (SMEs) sector in Kenya.

The SME sector contributes heavily to the growth of Gross Domestic Product (GDP) in the East African region.

“We have introduced new revenue generating systems…to support our future growth,” Awori said.

Additional reporting by Elayne Wangalwa