NAIROBI, Aug 6 (Reuters) - Barclays Bank of Kenya said peaceful presidential elections and a more stable economicenvironment should lead to a better second half, after itsfirst-half profit was hit by a one-off payment for earlyretirement costs.
Although the bank is one of the oldest in the country, ithas seen its earnings grow at a slower pace than its rivals inrecent years, as its model of focusing on wealthier clients waschallenged by home-grown lenders like Equity Bank.
Jeremy Awori, the managing director for the bank that iscontrolled by Barclays Plc, said first-half profit fellto 5.5 billion shillings ($63 million), but would have been flatfor the period at 6.3 billion barring the one-off cost.
"The current macroeconomic environment provides a betteropportunity for growth in the second half," he said, citing thepassage of a peaceful presidential election in March, which isexpected to spur demand for credit.
Demand for loans was curbed in the first half due touncertainty surrounding the March 4 polls, after the previouselection in 2007 was marred by violence.
The central bank has maintained its benchmark lending rateat 8.5 percent since May, pointing to stability of interestrates following steep drops in the previous ten months.
Barclays Kenya spent 788 million shillings on voluntaryearly retirements, while operating costs edged down by apercentage point, it said in a statement.
It declared an interim dividend of 0.20 shillings per share,down from 0.30 shillings in the same period last year. Earningsper share fell to 0.69 shillings from 0.79 shillings.
Barclays (BARC)
