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Barclays profits up 30% to Shs72bn

Kampala, Uganda | THE INDEPENDENT | Barclays Bank Uganda has recorded an impressive performance for the year ended Dec 2017, with a 30% growth in net profit to Shs72bn amidst a surge in the Non-Performing Loans.

The financial results released on April 16 shows that the growth in profits was driven by increase in income from loans and advances, deposits and placements as well as trading securities.

Rakesh Jha, the lenders Managing Director, said the performance demonstrates its customer’s continued confidence in its strategic approach and ability to meet their needs.

“It underscores our strength as one of Uganda’s most trusted banks,” he said.

However, the bank’s Non-Performing Loans increased from Shs 70.48bn in 2016 to Shs106.78bn in 2017 while large loan exposures increased from Shs388.76bn to Shs415.26bn during the same period under review.

On the other hand, the bank’s core capital increased from Shs293.2bn in 2016 to Shs326.3bn in 2017.

This development comes at the time the bank is in the process to rebrand to Amalgamated Bank of South Africa (ABSA), the name of its subsidiary in South Africa subject to the regulatory approvals.

The rebranding comes two years since the London-based Barclays PLC decided to sell its operations on the African continent. Barclays PLC reduced its majority stake from 62.3% to merely 14.9% and is set to contribute US $1.04bn (£765million) towards the bank’s rebranding agenda.

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