IDBZ revenue at $4,5 mln, HY profit up 16 pct

IDBZ revenue at $4,5 mln, HY profit up 16 pct

HARARE, August 31 (The Source)- The Infrastructure Development Bank of Zimbabwe (IDBZ) achieved a 16 percent increase in net profit to $196 572 in the six months to June compared to $169 720 in the same period last year.

In a statement accompanying financial results on Thursday chief executive Thomas Sakala said profitability for the period was weighed down by an impairment charge on a non-performing loan to Meikles Limited.

“The loan is a residual exposure from discontinued non-mandate business of availing short term facilities to corporates,” he said.

For the half year period the Bank’s net interest income declined to $2.36 million compared to $2.81 million same period last year.

Fee and commission income was at $961 901 an increase from $399 679 over the same period in 2016, while the Bank’s total revenue amounted to $4,57 million an increase from $3,25 million achieved last year.

In line with its mandate, the state run institution, has to date mobilized $8.1 million through private placements of housing bonds and Sakala said the balance of the funding requirements will be put to a public offer in the second half of the year.

The Government of Zimbabwe is the bank’s major shareholder with a 77,99 percent stake, other shareholders include the Finnish Fund for Industrial Cooperation Ltd, the African Development Bank, the German Investments and Development Company,Netherlands Development Finance Company and the European Investment Bank.