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Business Reporter
MBCA Bank Limited posted a solid set of results for the six months to June 2013 as profit after tax went up to US$2,104 million from US$2,077 million during the same period last year.The performance was attributed to an improved operating income which went up 11 percent from US$10,7 million recorded in the prior year to US$11,9 million. Operating expenses also increased by 15,4 percent from US$7,9 million to US$9,1 million in the period under review.
In a statement released last week, the bank said profits went up despite the limited activity in the economy and the implementation of the Memorandum of Understanding signed between banks and the central bank where interest rates, service and maintenance charges were reduced. The bank said the increase in operating expenses was mainly as a result of the increase in statutory deposit protection insurance and marketing expenses as the bank sought to increase its visibility to the targeted market segments.
Loans and advances to customers increased by 10,5 percent to US$97,4 million in the period under review from US$88,1 million as at December 2012.
The bank’s total deposits grew marginally by 5,4 percent from US$140, 3 million in December 2012 to US$147, 9 million. Consequently, the loans to deposit ratio increased to 66 percent compared to 63 percent reported in December last year.
According to the bank, capital increased to US$29,8 million from US$27,7 million due to organic growth.
Positive results in divisional performance of the bank also spurred the positive results. The corporate banking division contributed 44 percent towards the total revenue generated by the bank while retail banking and treasury divisions contributed 39 percent and 14 percent respectively.
MBCA board chairman Mr Willard Zireva said consultations were still ongoing on the indigenisation process being spearheaded by the Government to ensure that an acceptable solution is reached.
Going forward, he expressed optimism of an improved operating environment following the harmonised elections held on July 31.
Online Reporter