Barclays Bank of Kenya (BBK) net profit for the year 2017 has reduced by 6.3% to stand at Ksh. 6.9 Billion for the year ending 31 December 2017 as compared to the previous year when it stood at Ksh. 7.3 Billion.
Additionally, total interest income reduced by 3% to Ksh. 27 Billion as compared to Ksh. 28 Billion in the previous year. Non-funded income also declined by 10%.
It wasn’t all bad news, as the bank’s costs dropped by 1% to stand at Ksh. 16.8 Billion.
Barclays Bank Kenya Managing Director, Jeremy Awori, attributed the reduced profits to the implementation of the interest cap law. He added that the bank’s strategy going forward is to increasing sales in the upper segments and increasing focus on transnational bank deposits. There’s also a plan to further manage costs by automating the bank’s processing centers, investments in alternate channels and the implementation of branch rationalisation programmes.