Barclays Bank Kenya Managing Director Jeremy Awori. [Photo/Business Daily]
The Barclays Bank of Kenya has recorded Sh5.3 billion profit after tax down from sh. 6.1billion the same period last year.
A loss the bank has largely attributed to the Central Bank of Kenya's (CBK) recommended interest rate caps.
According to the Business Daily, the bank's Managing Director, Jeremy Awori said that the interest rate capping law has led to the decline.
"This is as a result of the interest rates law which led to the interest earning assets decline from 14.2 percent to 12.6 percent," Awori said as quoted by the Business Daily.
In addition, Awori said that the longer political period experienced this year had a general negative impact on businesses.
"The prolonged electoral period has presented a climate of uncertainty which has been challenging for the business whilst the interest rates law continues to undermine our interest income ," he added as quoted by the Business Daily.
However, the bank also recorded an increase in customer deposits by 11% totalling 200 billion shillings driven mainly by transactional accounts. Customer loans from the bank had also increased to sh. 167 billion.