Metbank FY profit doubles to $660k

Metbank FY profit doubles to $660k

HARARE, March 31 (The Source) – Metbank Zimbabwe said on Friday its after tax profit for the full year to December more than doubled to $660,288  from $259,510 previously on increased income.

Operating income rose 90 percent from $3,6 million in the previous year to $6,9 million on the back of a surge in non-interest income.

Net interest income declined by 94 percent from $4,3 million in the previous year to $251,987 on the back of a  very significant increase in interest expenses.

Interest expenses rose 77 percent from $4,5 million previously to $8,1 million driven by a surge in interest expense on deposits from other banks.

However, the decline in interest income was offset by a triple fold increase in commission, fee income and other operating income  from $1,6 million in the preceding year to $6,2 million.

Operating expenditure declined from $10,94 million in the previous year to $9,98 million chiefly on the back of a reduction in staff costs and administrative expenses.

Non-performing loans declined to 3,1 percent which is within the regulatory threshold of 5 percent as a result of aggressive loan collection and a cautious lending strategy.

“The bank continues to be aggressive in its loan collection and recovery efforts whilst underwriting a new book with caution”, said chairman Wilson Manase.

Loan and advances decreased by 25 percent from $28,7 million in the preceding year to $21,5 million.

Deposits increased by 46 percent from $38,83 million in the previous year to $56,62 million.

Total assets increased by 27 percent to $200,7 million in the period from $157,9 million recorded in the previous year.

The bank increased its investment in property by 22 percent from $116,4 million in the preceding year to $142,4 million

The bank closed the year with a total regulatory capital of $55,9 million and said it continues to pursue its recapitalisation efforts to reach minimum regulatory capital of $100 million by year 2020. However its capital adequacy ratio declined from 23,7 percent previously to 19 percent.

Manase said the bank continues to focus on property development, mortgage financing and commercial banking under its five-year strategic plan.