Barclays Bank profit up by 29pc in 2018

Dar es Salaam. Barclays Bank Tanzania posted a growth of 29 per cent in its profit before tax to Sh14.5 billion the year to December 31, 2018 , up from Sh11.2 billion in 2017.

The bank states that the profit growth was attributed to the growth in revenue and decrease of the loans loss impairment charges.

The Barclays Bank financial statement published on The Citizen yesterday the bank’s revenue grew at 7.4 per cent in 2018 to Sh89.7 billion continuing the successive growth from the previous year where the revenue grew by 25 per cent.

“I am proud of what we have achieved as a team and confident that this trend will be sustained into the future, “ the bank’s managing director, Mr Abdi Mohammed (pictured), said in a press release.

According to Mr Mohammed, their brand transition to Absa also presented new opportunities for the bank to grow.

In 2018, the lender ditched the name Barclays Africa Group Limited for Absa Group Limited.

The bank was able to cut by half its nonperformance loans (NPLs and advanced to Sh15 billion last year from Sh30 billion in 2017.

Barclay’s NPLs previously stood at 8.2 per cent and 12 per cent in 2017 and 2016 respectively.

“This has been achieved by prudent lending policies and notable improvements in the economic environment as well as enabling policies and regulations,” the bank statement reads.

The MD said Barclays Bank continue to be in the top lenders’ spot after their customers’ loans and advances grew by 30.7 per cent, reaching Sh460 million in 2018.

Customers’ deposits reached Sh674 billion, mainly driven by the growth in corporate banking segment.