MBCA Bank nets US$2 million profit

the interim to June compared to US$8 million over the same period last year, which represented a 25 percent growth.
“Underpinning this growth was a 50 percent increase in interest income, mainly due to growth in the loan book of 63 percent from June 2011 and a 21 percent increase in non-interest income resulting from increased transactional volumes and agency fees commission,” said MBCA.
Operating costs of US$7,913 million decreased marginally from the US$7,939 million incurred in the same period last year.
MBCA said that of particular note regarding cost management was the decline in staff costs of 3 percent to US$4,397 million, resulting from the staff rationalisation at the financial institution. The reduction of staff was concluded in the fourth quarter last year.
Cost to income ratio decreased to 74 percent from the 92 percent reported over the corresponding period ended June 30, 2011.
Loans and advances for the bank were US$98,6 million, representing 51 percent of the total assets.
The Nedbank-controlled bank said the quality of assets continues to improve as evidenced by the loan loss provision. The loan loss provision in the period under review stood was 1,67 percent against 2,92 percent over the same period last year.
The balance sheet grew by 6,3 percent from December 31, 2011 to close at US$192,057million by June 30, 2012, with loans and advances contributing an increase of 22 percent to the statement of financial position.
Total deposits grew by 4 percent to US$156,372 million. MBCA expressed strong hope that it would meet new capital levels announced by the Reserve Bank of Zimbabwe. MBCA said that it would submit its capitalisation plan to the relevant authorities by September.
Announcing the Mid-Term Monetary Policy Review Statement, RBZ Governor Dr Gideon Gono increased minimum capital thresholds for banks by up to 900 percent.
The minimum capital requirements for both commercial and merchant banks were increased to US$100 million from US$12,5 million and US$10 million thresholds, respectively.
Building societies will now be required to have US$80 million from US$10 million, discount and finance houses US$60 million from US$7,5 million and asset management companies should now have US$5 million from US$1 million.
Banks are required to be 25 percent compliant by December this year, 50 percent by June 2013, 75 percent by December 2013 and achieve full compliance by June 2014.