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Bianca Mlilo, Business Reporter
THE banking sector recorded a 30 percent increase in profit to $111,3 million in the third quarter of 2016, a report from the central bank has shown.
In its latest banking industry quarterly report the Reserve Bank of Zimbabwe (RBZ) said total banking sector deposits grew to $6,14 billion from $5,67 billion in the previous quarter.
This accounts for 8,29 percent increase.
“The banking sector remained profitable during the period ended September 30, 2016, with an aggregate net profit of $111,30 million, representing an increase of 29,28 percent from the $86,09 million reported for the same period in 2015,” said RBZ.
“A total of 17 out of 19 operating banking institutions recorded profits during the period ended 30 September 2016,” it said.
The central bank said interest income was the major driver of total income of $0.73 billion for the period ended September 30, 2016, constituting 59,41 percent.
Non-interest income accounted for 40,59 percent of total income comprising fees and commission (34,88 percent), foreign exchange fees (3,94 percent) and other non-interest income (1,77 percent).
“Fees and commission increased by 4,78 percent from $250,51million to $262,48 million over the review period,” said the apex bank.
“The increase was partly attributed to increased volumes of cash withdrawal transactions associated with lower cash withdrawal limits imposed by some banks.”
The average return on assets and return on equity improved to 1,56 percent and 8,85 percent as at September 30, 2016, from 1,37 percent and 7,9 percent recorded for the period ended September 30, 2015, respectively.
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