Barclays back in the black

Antony Mandiwanza said the bank had recovered from a US$1,3 million loss in the prior year.
The profit was largely the result of a 65 percent contribution from non-funded income, which came in at US$25 million compared with funded income of US$9 million.
Earnings per share rose 112 percent from 0,06 cents the prior year a share to 0,07 percent in 2011 while revenue rose 27 percent to US$32 million.
The bank recorded positive results for the full year on the back of an 11 percent increase in costs to US$37 million from US$33 million the previous year.
But excluding the US$7 million from the Barclays head office for staff rationalisation, which saw 92 members leaving the bank, the costs increased by 9 percent.
Mr Mandiwanza said the bank’s loan book closed the year 36 percent up at US$58,5 million on December 2010 levels with a significant portion either repaid or awaiting drawdowns.
“Over and above reported balances, US$16,7 million was marked and available for drawdown by customers as at December 2011 while a further US$30 million was . . . available for drawdown in offshore structures,” he said.
The chairman said the loan loss ratio remained less than 1 percent comprising general provisions and the bank said it would continue with rigorous credit vetting and prudential lending to safeguard depositors’ funds.
Chief finance officer Mr Samuel Matsekete said deposits increased from US$181 million in 2010 to US$214 million of which 67 percent of the amount were corporate.
Barclays managing director Mr George Guvamatanga said the full financial results reflect the success of the bank’s growth and operational strategies.
“I am pleased that we have made genuine strides towards achieving the goals that we had set for ourselves. Our profit before tax went up from US$1,9 million in the prior year to US$2,1 million on the back of prudent risk management,” he said.
The bank’s retrenchment exercise was meant to ensure a business model that was fit for its purpose and in line with macro-economic realities.
Looking ahead, the bank said it aimed to grow its customer base by 6 percent from the current 155 000 customers.
“We also project sustained growth in total income targets for 2012 and expect it to grow by at least 14 percent,” said Mr Guvamatanga.
The bank expects to continue benefiting from the process and structural efficiency programmes done over the past two years with payback from the restructuring costs being realised, according the bank’s projections.
Focus would also be placed on widening the product range, mainly for the retail customers as well as enhancing the distribution and service channels.