Metropolitan Bank profit up

Operating income rose to US$15,4 million last year from US$10,3 million in the prior year period, while operating expenditure also increased to US$11,7 million from US$7,8 million.
The bank’s profit before tax rose 62 percent to US$3,3 million during the year under review from the previous year’s US$2 million.
Management attributed the improved profitability to diversification of income and a growing clientele base.
“The results for the year . . . confirm that the bank continues to accelerate growth through diversification of income and increased clientele base,” said Metropolitan Bank chairman Mr Wilson Manase.
Impairment of loans and advances for the year amounted to US$293 152 (2010: US$445 827). The company said tight management of risk coupled with pro-active management of accounts resulted in low levels of bad debts provisions.
Metropolitan said its year-end assets increased 61 percent from US$65,3 million in 2010 to US$105 million last year.
The ratio of liquid assets to deposits stood at 35 percent.
The bank’s total shareholders equity stood at US$21 million as at the close of the year, constituting 20 percent of year-end assets of US$105,3 million, reflecting a positive capital position during the period under review.
Meanwhile, the bank has said its information technology business strategy covering MasterCard and the Internet banking project will be completed this month and should go live in the second quarter of this year.
The local financial services sector, however, still faces challenges of high proportions of transitory deposits due to general mistrust of banks by the public.