Regions

Peaceful elections, economic stability lead to better performance for Barclays Bank of Kenya

August 6
5:00 AM 2013

Barclays Bank of Kenya revealed that it is expecting better performance in the second half of this year. The bank said that the peaceful presidential elections held in March and a more conducive economic climate will help propel growth. In the first half of 2013, the Barclays Plc-controlled bank saw its profit drop to KES 5.5 billion or USD 63 million as it needed to pay early retirement costs totaling KES 788 million.

However, Bank of Kenya's Managing Director Jeremy Awori said the bank expects demand for credit to rise. "The current macroeconomic environment provides a better opportunity for growth in the second half," he told Reuters. Prior to the March 4 polls this year, the demand for loans was lessened as Kenyans feared a repeat of the 2007 bloody elections.

The banks earnings had also grown slower in recent years until now because it had centered its business on richer clients. Its rivals Equity Bank and other home-grown lenders have filled in the void, challenging Kenya's oldest bank to rethink its strategy.

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