Africa Banking Corporation of Zimbabwe (BancABC) has recorded a loss after tax of $162 000 for the six months ending June 30 2015 from a profitability position in the comparable period last year attributed to a combination of weak economic activity in leading sectors and reduced lending with the focus on quality.
BY BUSINESS REPORTER
In the same period last year, the bank posted a profit of $6,9 million. Net interest income declined to $18,9 million compared to $25,1 million during the same period last year.
Loan impairment charges increased to $9,67 million from $7,3 million.
Fees and commission income declined to $8 467 000 from $9 753 000 during the comparable period in 2014.
In a statement accompanying the bank’s unaudited consolidated results, BancABC board chairperson Alvord Mabhena said there were great opportunities to support key sectors of the economy through cost effective and long-term financing.
Mabhena said while fee and commission income was also down from the prior year, the bank was working on capturing growth opportunities offered through technology and several exciting initiatives would come to market in the short to medium term.
“As I am sure most business are doing, initiatives to reduce costs have been put in place, which continue to bear fruit with operating expenses 3% lower than in the corresponding period from last year and 19% below budget. Reduction in cost was recorded on most expense lines and this is expected to be maintained to the end of the year and into next year,” Mabhena said.
In the period under review, the cost to income ratio was 67%, with efforts in place to reduce the cost base further to line up with the level of revenues.
Operating income declined to $19 046 from $29 096 on the same period last year.
