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Harare Bureau
STATE agriculture development bank, Agribank posted a 63 percent growth in profit after tax to $12,9 million for the year ended 31 December 2018 from $7,9 million recorded in the prior comparable period.
The profit for the year was attributed to growth in non–interest income and interest income contributing 69 and 31 percent respectively for the year 2018 on the back of marked growth in the loan book during the year.
Non-interest income grew by 35 percent to $16,4 million from $12,2 million recorded in 2017 owing to increased transactions from the electronic banking and ICT delivery channels, making up 75 percent of non-interest income.
On the other hand interest income grew by 21,2 percent to $37,1 million from $30,5 million recorded in 2017.
Total operating expenses grew by 17 percent to $27,9 million for the year up to December 2018 from $23,8 million in the same period in 2017.
The growth in operating expenses was credited to business growth initiatives undertaken during the year as most customer transactions were conducted electronically thereby reducing the cost of doing business.
Non-performing loans (NPL) ratio improved to 8,75 (a better result compared to industry average of 9,35 percent) as at the end of December 2018 from 13,5 percent in 2017 owing to sustained debt recovery initiatives and more prudent lending methods.
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