HomeNewsSecond largest financier reports strong earnings

Second largest financier reports strong earnings

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Comesa’s PTA Bank, Zimbabwe second largest financier after the African Export-Import Bank (Afreximbank), has reported a full-year profit of $18 million for the 2009 financial year from $12,5 million the year before, the president of the bank, Michael Gondwe, has said.

Gondwe tabled the report during the 26th annual meeting of the PTA Bank held in the Seychelles.

Officially opening the bank’s annual meeting, Seychelles president, James Michel commended the bank for its good performance despite the harsh operating conditions.

He challenged member states to enhance support to the bank to enable it continue being supportive of business growth.

“It is important for us to enhance capacity of regional institutions such as the PTA bank if they are to continue playing a catalytic growth in our economies,” Michel said.

“They recognised the imperative need for opening this office driven by the increasing number of customers we have not only here in Zimbabwe but also in the sub region,” Gondwe said at the launch of the bank.

The development finance institution (DFI) provides trade finance, project and infrastructure finance and financial syndications as its core products and services.

Its approvals and disbursements to Zimbabwe through structured deals and syndicated financial arrangements have increased in the last five years following the withdrawal of European and North American banks as a result of financial restrictions imposed on the country by the European Union, the US and other developed countries.

As a result of the increased business, the bank had to open a branch in Harare to serve the country and four other Comesa member states, namely Malawi, Mauritius, Seychelles and Zambia.

The bank’s facilities have bailed out businesses in the country and more are currently being arranged to fund the country’s recovery.

Facilities are structured within a floor of $500 000 and a ceiling of $20 million and approvals vary according to the needs and repayment capacity of the borrower.

The shareholders of the bank include the African Development Bank, Burundi, China, Comoros, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Malawi, Mauritius, Rwanda, Seychelles, Somalia, Sudan, Tanzania, Uganda, Zambia and Zimbabwe.

Last year, the bank’s shareholders authorised an increase in the bank’s issued share capital to increase its funded assets and loan book.

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