adminbanking arm.
The US$4,96 million was a 48 percent increase from US$3,36 million that the bank made during the same period last year.
Performance was largely driven by an increase in net interest income, which was up 37 percent on the back of increased loan utilisation throughout the year.
“Costs were also contained as reflected by a cost to income ratio of 68 percent against 79 percent achieved in the prior year,” the bank said. The bank’s loan book increased by a marginal 9 percent to US$88,19 million.
The Nedbank-controlled bank said the increase in the loan book at the end of the year was as a result of the seasonal nature of facilities where some clients tend to pay off their loans in December. In terms of performance the bank’s corporate banking division contributed 45 percent of total operating income during the period under review compared to 48 percent during the prior period.
“The bank continues to enjoy the group’s support in terms of a US$75 million on and off balance sheet line of credit and US$30 million from Afreximbank’ lines of credit for commodities.
“The division’s performance continues to be biased towards agriculture and mining sectors with inroads having been made to provide services to new players this season,” MBCA said.
Its retail division contributed 39 percent compared to 34 percent during the same period last year while Treasury weighed in with 16 percent, down from 18 percent last season.
Looking ahead, the bank said it was maintaining a positive view of the future and has positioned itself to take advantage of opportunities that may be presented by the political and economic environment after the elections.
“The bank has also remained mindful of the challenging political and economic environment but will aim to deliver returns to shareholders that are commensurate with the improved financial position,” the bank said.
In terms of indigenisation, the bank said consultations were in progress to reach an amicable solution.
Online Reporter