Barclays Zim profit doubles to $6,6mln, targets cash generating state enterprises

Barclays Zim profit doubles to $6,6mln, targets cash generating state enterprises

HARARE, March 31 (The Source) –  Barclays Bank Zimbabwe’s after tax profit for the full year to December doubled to $6,6 million from  on improved interest income despite recording a 17 percent fall in deposits.

Net interest income was 15 percent up at $14,1million while gross loans and advances were six percent up at $124,5million.

Customer deposits fell to $206,4million compared to $248million in the prior period.

Managing director George Guvamatanga told analysts on Monday that the bank would in the future seek to widen its customer base to include cash generating state owned enterprises and government institutions.

“One of our strategies will be to target some government and quasi-government departments. While their balance sheets might be weak you will see that their cash generating capacity is quite high so we will be tailoring our products in line with their demands,” he said.

Cash generated during the period under review totaled $7,9 million from $6,7 million recorded in the previous year

“We believe there is still much we can do to address cost base in relation to lower margins,” said Guvamatanga indicating that the bank would invest in its technology infrastructure to enhance its e-Banking facility.

Operating expenses shot up 11 percent to $37,5million.

Earnings per share (EPS) doubled to $0,31 cents from $0,14 cents.