MBCA H1 profit doubles to $2,7mln

MBCA H1 profit doubles to $2,7mln

HARARE, August 4 (The Source) – MBCA Bank’s net profit more than doubled to $2,7 million in the six months to June from $1,2 million achieved in the comparable period last year, driven by an increase in non-interest income. 

Non-interest income grew 34 percent to $8,65 million pushing revenue to $16,1 million from $14,1 million recorded in the same period in the prior year.

However, net interest income declined by 3,5 percent in the same period to $7,4 million, despite an increase in the loan book.

“The loan book increased by 10,7 percent to $105,25 million from $95,01 million as at 31 December 2016, mainly due to new drawdown facilities and increased utilisation of existing facilities,” chief executive Charity Jinya said in a statement.

The bank’s total assets increased by 3,8 percent to $310,3 million from $298,9 million as a result of an increase in net loans and advances.

Total expenses excluding impairment charges increased from $10,64 million to $12,6 million, driven by employment costs and administrative expenses which rose 18 percent and 22 percent respectively due to business expansion.

Non-performing loans ratio fell to 5,77 percent from 7,84 percent as the bank recovered previously written off bad debts.

Deposits from customers increased by 4,3 percent to $246,86 million from $236,75 million recorded in the same period last year.

Core capital as at June stood at $50,58 million. The central bank has set a $100 million capital threshold by December 2020.

The bank’s liquidity ratio decreased to 77,76 percent from 83,1 percent last year , but above the regulatory limit of 30 percent, while its capital adequacy ratio at 28 percent is above the regulatory limit of 12 percent.