Interfin Banking Corporation posted a $2 million profit for the year ended December 31 2010 and hopes to open an additional 12 branches in the course of the year.
The bank currently has 15 branches. Last year, Interfin successfully took over CFB bank limited assets. Its profit is better than the $1, 7 million it posted in 2009.
“The profit for the year was realised after taking into account CFX Bank Limited branch merger costs, retrenchment costs and the rebranding exercise to consolidate and homogenize the CFX Bank Limited network,” said Interfin Banking Corporation, Executive Director Timothy Chiganze.
The bank’s total assets grew by 283% from $44, 4 million in 2009 to $170 million last year mainly funded by growth in deposits.
Secured lines of credit were $132,9 million last year compared to $28,4 million in 2009. The loan book grew from $29, 4 million to $96, 9 million last year representing a 230% increase.
“The bank has made an allowance for loan impairment of 5% against an industry average of 1%, this is considered adequate in line with the tough operating environment facing our industry,” said Chiganze.
“Outlook for the coming year is fairly positive as the bank has successfully transformed its operations from a merchant bank to a commercial bank.”
He said all regulatory and merger issues have been complied with and significant lines of credit have been secured setting the platform for growth of the bank going forward.
“The acquisition effectively enabled a practical transformation from a merchant bank to a commercial bank, having been granted a commercial banking licence in March 2009,” Chiganze said.
He said the bank’s capital position, as at the reporting date, stood at $21, 2 million.
Chiganze said the prevailing political and policy uncertainty had limited the availability of external investment capital into the country hence depriving liquidity not only to the banking sector but to the entire economy.
He said confidence in the banking sector continues to improve but there is still a high level of disintermediation as a result of low income levels and the high levels of informal trade.