Barclay Bank records fall in non-performing loan facilities

Barclay Bank records fall in non-performing loan facilities  

By MARTIN LUTHER OKETCH

Kampala. Barclays Bank has registered a decline in non-performing loans, falling to Shs53b in the year ended December 2018 down from Shs106b in 2017.

The fall, according to the bank’s published financial results, represents a 0.7 per cent decline
attributed to tight credit controls that the bank undertook during the year.
The decline puts Barclays Bank’s credit loss below the industry average of between 1.3 and 1.5 per cent.

Speaking in Kampala yesterday during the release of the bank’s financial results, Mr Rakesh Jha, Barclays managing director, said: “The ration of our credit loss fell from 2.3 per cent in 2017 to 0.7 per cent in 2018 driven by enhanced credit control and monitoring procedures,” noting that the level of non-performing loans had fallen to 1 per cent, which is below the industry average of 3.4 per cent.
The bank, he said, had seen some solid growth on its balance sheet, registering a 13 per cent increase in profit before tax from Shs86.8b in 2017 to Shs97.8b.

Barclays, according to the results also recorded a 6 per cent year-on year-growth in customer deposits achieved through increased customer centricity, relationship deepening and optimization of channel capabilities such as instant ATM deposits and agency banking.
The bank, according to Mr Jha, currently has 500 agency banking agents spread across the country.

Assets grew by 15 per cent to Shs2.297 trillion in 2018 compared to Shs2.477 trillion in 2017 while customer deposits increased from Shs1.68 trillion to Shs1.78 trillion in the period under review.
However, the growth, according to Mr Michael Segwaya, the Barclays executive director, was eaten into by the Shs17b tax that the bank paid to government in the period but argued the current economic prospects will offer better returns this year.

moketch@ug.nationamedia.com