Profit Before Tax rose by 26.4% to stand at Kshs. 8.9 Billion. Profit After Tax, though, was up 11.2%, at Kshs. 6.1 Billion
The profit growth was guided by a significant reduction in staff costs and a reduction in the loan loss provision
Gross Non-Performing Loans (GNPL) were down 9.8 percent resulting in GNPL/Net Loans improving by 1.1% to 5.76%
The significant reduction in expenses led in the Cost:Income ratio reducing to 54.65%, from 64.46%
During the period, BBK managed to recover previously impaired loans
2010 vs. 2011 Analysis
2010 Kshs. | 2011 Kshs. | % CHANGE | |
TOTAL ASSETS | 177.1 BILLION | 180.9 BILLION | +2.1% |
NET LOANS AND ADVANCES | 91.7 BILLION | 98.9 BILLION | +7.9% |
CUSTOMER DEPOSITS | 127.7 BILLION | 135.8 BILLION | +6.3% |
LOAN:DEPOSIT RATIO | 71.78% | 72.82% | +1.0% |
TOTAL INTEREST INCOME | 13.3 BILLION | 12.7 BILLION | -4.3% |
TOTAL INTEREST EXPENSE | 1.22 BILLION | 732 MILLION | -40% |
NET INTEREST INCOME | 12.1 BILLION | 12 BILLION | -0.7% |
TOTAL OPERATING INCOME | 19.7 BILLION | 19.6 BILLION | -0.9% |
TOTAL OPERATING EXPENSE | 12.7 BILLION | 10.7 BILLION | -16% |
COST:INCOME RATIO | 64.46% | 54.65% | -9.8% |
PROFIT BEFORE TAX | 7 BILLION | 8.9 BILLION | +26.4% |
PROFIT AFTER TAX | 5.5 BILLION | 6.1 BILLION | +11.2% |
Total Assets grew by 2.1% to Kshs. 180.9 Billion, which is less than the 5.3% which the entire industry grew by in the 9 months to September
Net Loans were up 7.9% to Kshs. 98.9 Billion
The Bank managed to ramp up its profits in the period in no small part to the reduction in their expenses, as Total Interest Income and Total Operating Income were both down
Interest from Loans and Advances as well as Interest from Government Securities was down.
Loan loss provision reduced by 55.7% to Kshs. 520 Million from Kshs. 1.2 Billion
Fees and Commissions declined by 7.2% to Kshs. 5.2 Billion
Foreign Exchange Trading Income was up 16.1% to Kshs. 2.1 Billion
Barclays’ decision to lay off managers at the beginning of the year led to Staff Costs decreasing by 15.1% or almost Kshs. 1 Billion
Liquidity was at a solid 47.6%, a 27.6% excess on the Minimum Statutory Ratio
Q2 2011 vs. Q3 2011 (Quarter on Quarter Analysis)
Q2 2011 Kshs. | Q3 2011 Kshs. | % CHANGE | |
TOTAL INTEREST INCOME | 4.0 BILLION | 4.9 BILLION | +24% |
TOTAL INTEREST EXPENSE | 232.5 MILLION | 319 MILLION | +37% |
NET INTEREST INCOME | 3.71 BILLION | 4.57 BILLION | +23.2% |
TOTAL OPERATING INCOME | 6.3 BILLION | 7.1 BILLION | +12.4% |
TOTAL OPERATING EXPENSE | 3.34 BILLION | 3.55 BILLION | +6.0% |
COST:INCOME RATIO | 53.2% | 50.2% | -3.0% |
PROFIT BEFORE TAX | 2.94 BILLION | 3.52 BILLION | +19.7% |
PROFIT AFTER TAX | 2.11 BILLION | 2.47 BILLION | +16.9% |
BBK saw a positive Q3 2011 in comparison to Q2 2011
It is however interesting to note the 37% rise in Total Interest Expense for the corresponding quarters which is will likely be replicated in the next couple of quarters
The release of the results came hot on the heels of the decision by the Central Bank of Kenya Monetary Policy Committee to raise the Central Bank Rate by 550 basis points to 16.5% in its attempt to try to rein in inflation
This will make the rest of the year a tough period for Kenyan banks to find new lending opportunities. Economic growth is expected to cool
Barclays closed Wednesday trading down 4.62% to 14.45/=. The share though rallied 38.5% in the month of October, only being bested by Williamson Tea which rose 62% in the same month. Barclays is trading at a Price to Earnings ratio of 7.5.
Barclays closed Wednesday trading down 4.62% to 14.45/=. The share though rallied 38.5% in the month of October, only being bested by Williamson Tea which rose 62% in the same month. Barclays is trading at a Price to Earnings ratio of 7.5.
He had one crooked tooth in front that was sort of endearing.
ReplyDeleteHe said that there was an incredible amount of mistakes.
“Nine o’clock” her sunny little clock blinked at her.
My weblog: red shoes