Barclays Bank Kenya's first quarter profit rose marginally by three per cent to Sh2.18 billion as the bank's provision for bad loans shot up drastically. Gross non performing loans for the period stood at Sh7.89 billion, a 30.4 per cent increase versus the previous year. Loans and advances to customers were higher by 13.2 per cent to Sh5.05 billion during the quarter from Sh4.46 billion. This provision is the money a bank sets aside to cover potential losses on loans either as a result of defaults or renegotiation of repayment terms. The bank's majority shareholder Barclays Africa Group is undergoing a transition after the parent company Barclays Plc announced in March it would sell its controlling stake in the group.

Source: The Star May 30, 2016 05:15 UTC