Metbank after tax profit up 27pc

Harare Bureau
METBANK’S after tax profit for the half-year period ended 30 June 2013 went up by about 27 percent to $1,9 million compared to the same period last year’s profit of $1,5 million largely owing to a determined focus on diversified revenue generation and cost control as well as efficiency throughout the bank.

Total comprehensive income realised for the period under review also grew by about 27 percent from the prior period to $1,9 million. In a statement accompanying the results, Metbank chairman, Mr Wilson Manase said due to the efficiency throughout the bank, they had managed to maintain a stable cost to income ratio.

“As a result of unrelenting focus on diversified revenue generation and cost control as well as efficiency throughout the bank, our cost to income ratio remained stable at 79 percent,” he said.

Metbank’s total assets also took a 2,9 percent dip to end the period under review at $191,6 million down from $197,3 million the prior period while gross advances rose 12,5 percent to $118,4 million.

Deposits accounted for $137,1 million representing a 6,9 percent decrease and as a result, the loans to deposit ratio rose from 68 percent to 86 percent as at June 30.

The statement added that during the six-month period under review, macro-economic indicators showed some levels of stability, but generally indications are that economic performance remains hamstrung by the liquidity constraints, subdued fiscal revenue inflows and huge expenditure requirements on very limited resources.

The bank’s total liabilities decreased marginally by 7 percent from $152,8 million to $142,1 million largely owing to a decline in deposits from customers during the period under review compared to last year. Mr Manase added that going foward, the bank would continue to implement the necessary strategies to ensure they are able to tackle the challenges that lie ahead.

“We will continue to implement all necessary strategies to ensure that Metbank is adequately equipped to exploit opportunities and also meet the challenges that lie ahead.

“The Internet banking project for consumer banking customers is in progress and will be completed in the second half of the year,” he said.

He also said Metbank became the first bank in Zimbabwe to issue EMV (Europay, Mastercard and Visa) chip enabled Debit MasterCard, while the move will enable safer, smarter and more secure transactions across cards and remote payment channels.