Barclays Q3 earnings hit by market volatility

Barclays Bank Kenya net earnings for the nine months to September rose 3 per cent to Sh6.4 billion from Sh6.2 billion at the same period last year.

The bank’s net interest income increased by half a billion to Sh15.2 billion from Sh14.7 billion in the period under review.

Barclays attributed the lacklustre growth in net interest income to a 45 per cent rise in interest expense arising from an increase in cost of funds in the market.

“The last nine months have been characterized by turbulence at the macroeconomic level arising from fluctuation of the local currency and high interest rates. This has had an impact on the bank’s interest expense line and Mark to Market loss on the trading book,” Barclays said in a statement.

The lender said growth mainly came from its retail and SME segments.  

The non interest income line was impacted by unrealised losses on the trading book following the steep increase in interest rates. Total operating income rose to Sh21.7 billion.

SOURCE: BUSINESS DAILY