Business

Barclays Bank of Kenya full-year profit declines on bad loans

Erik Ombok

In its full-year results, the Bank of Kenya said profit had declined by 13% on bad debt.

Barclays Bank. (AFP)

Barclays Bank of Kenya, the nation's fourth-biggest lender by market value, said full-year profit declined 13% on bad-debt provisions and a one-time reorganisation cost, missing analysts' estimates.

Net income fell to 7.62-billion shillings ($89-million) last year from 8.74-billion shillings in 2012, according to a statement handed to reporters on Thursday in Nairobi, the capital. The average estimate of four analysts surveyed by Bloomberg was for a profit of 8.96-billion shillings.

The value of provisions for bad loans was more than seven times higher than a year earlier while the bank had a "one-off restructuring cost" of 788-million shillings, it said.

Net interest income rose to 18.9-billion shillings from 18.1-billion shillings a year earlier, while loans and advances increased 13% to 118-billion shillings, Yusuf Omari, chief financial officer, said at a briefing in Nairobi.

The company's shares have dropped 3.7% this year to 16.95 shillings by 9:45 am in Nairobi, compared with a 0.8% decline in Kenya's benchmark FTSE NSE 25 Share Index. – Bloomberg

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