adminSpeaking at the Barclays analyst briefing last week, the bank’s chief financial officer, Mr Sam Matsekede, said they were expecting to lose between 5 and 6 percent of their net interest as a result of the implementation of the MoU.
He added that the effects would be minimal in that as a bank they mostly target the high end segment of the market.
“It is estimated that banks will lose about 40 percent income nationwide, but Barclays will only account for about 5 percent of that.
“This is because we lean more towards high-end clients in terms of personal bankers, so the impact for us is lower,” Mr Matsekede said.
He said the bank was hoping to increase it client mix and introduce cheaper channels of transacting that would help to minimise costs.
The Bankers’ Association of Zimbabwe president and Barclays chief executive Mr George Guvamatanga said just over US$40 million would be taken away in terms of income to financial services sector as a result of the MoU.
Barclays registered a profit-after-tax of US$2,1 million for the year ended December 31, 2012. Comprehensive income for the year was US$5,8 million.
This result translated to a basic earnings per share of US$0,10c compared to US$0,07c per share for the comparable period.
Net interest income grew by 13,7 percent while non-funded income increased by 10,7 percent.
Included in this figure was US$1 453 116 received from Barclays Plc to compensate Barclays Bank of Zimbabwe for some loss of income in its custody business.
Operating costs excluding the effects of restructuring costs incurred in 2011 grew by 13,7 percent.
The unit, whose loan book increased by 57 percent to close the year at US$93 million excluding impairment, its loan loss ratio remained within 1 percent reflecting a loan book of 67 percent for the year. Total income grew by 16 percent.
Net interest income increased by 13 percent, while the total capacity adequacy ratio closed the year at 18 percent, ahead of the regulatory minimum of 12 percent.
Mr Matsekede said this was after the risk-weighted assets grew significantly on the back of higher loans and advances.
Online Reporter