Barclays Bank (Tanzania) Limited has
posted a net loss of 6.29bn/- in the second quarter of this year, months
after closing dozens of its branches and laid down workers in what it
called "restructuring".
The bank in the similar quarter last year made a
net profit of 1.63bn/-.
According to the bank's financial
statement released, the losses are attributed to the amount set aside
for impairment losses on loans and advances of 2.34bn/- in the said
quarter.
The impairment and non-interest expenses amount reduces
Barclays' net interest and non income earning of 5.42bn/- and 6.0bn/-
respectively.
This also affected the bank's earning
per share after dropping to negative 118/- against 31/-. The
non-interest expenses climbed up from 11.63bn/- of last year's second
quarter to 15.37bn/- in this year, mainly pushed by other operating
expenses that consumed 8.51bn/- in just three months.
In May, Bacrlays was forced to close 10 branches and retrenched 100 workers countrywide in a move the bank termed as "restructuring" but analysts said was due to stiff competition and poor expansion plans.
In May, Bacrlays was forced to close 10 branches and retrenched 100 workers countrywide in a move the bank termed as "restructuring" but analysts said was due to stiff competition and poor expansion plans.
Barclays
Tanzania Managing Director Mr Kihara Maina said then that closing and
merging the branches decision would enable the bank to invest more
effectively in other opportunities.
"This is part of the organization's strategy to realign their geographical presence in the country," the Barclays MD said in a release.
"This is part of the organization's strategy to realign their geographical presence in the country," the Barclays MD said in a release.
Commenting on the
restructuring process, Bank of Tanzania's Director of Banking
Supervision, Mr Agapiti Kobelo, said that the bank balance sheet is
sound, healthier and there is nothing to worry it "is merely
restructuring".
The Director said the statement to close branches was basically on the restructuring side after a cost benefit analysis which shows that the expansion, which was done at a go at late 2000s, was not paying.
The Director said the statement to close branches was basically on the restructuring side after a cost benefit analysis which shows that the expansion, which was done at a go at late 2000s, was not paying.
Up to the end of first half of this year, Barclays
total assets grew slightly less to 513.27bn/- from 570.33bn/- while its
customer deposits also slid to 402.08bn/- from 471.29bn/- of similar
half of last year.
Last year, Serengeti Advisers' banking survey shows that Barclays is the fourth biggest bank in the country, with a workforce of 668, in term of employment controlling 6 per cent of total bank's staff of 11,208 at the end of 2010. But the number of workers has dropped in the second quarter to 586.
Last year, Serengeti Advisers' banking survey shows that Barclays is the fourth biggest bank in the country, with a workforce of 668, in term of employment controlling 6 per cent of total bank's staff of 11,208 at the end of 2010. But the number of workers has dropped in the second quarter to 586.
Source: The Daily News,http://www.dailynews.co.tz, reported by Abduel Elinaza
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