HomeNewsBancABC Zim drives group profit

BancABC Zim drives group profit

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ABC Holdings Limited’s subsidiaries BancABC Zimbabwe and BancABC Tanzania were the major contributors to attributable profit of the company of 73 million Botswana Pula (BWP) for the six months ended June 30 2011 up from from BWP 45 million last year.

BancABC Zimbabwe and BancABC Tanzania recorded increases of 421% and 69% respectively while BancABC Botswana’s attributable profit was flat.

Contributions by BancABC Mozambique and BancABC Zambia declined to 41% and 18% respectively.

In a statement accompanying the group financial results, ABC Holdings Limited group chief executive officer, Doug Munatsi said the head office entities registered an attributable loss of BWP 31 million from a loss of BWP6 million in 2010.

The group recorded share of associate’s results loss of BWP 5 million from BWP11 million loss in 2010.

“Even though overall head office expenses declined by 9% to BWP43 million, total income declined sharply by 50% to BWP16 million. The massive decline in income is due to the fact that most of the cash held and invested by head office has now been deployed as capital to subsidiaries,” he said.

Net interest income for the group stood at BWP191 million up 30% from BWP45 million last year same period due to the growth in the balance sheet, which registered a 23% surge from December 2010 to BWP1,4 billion.

“BancABC Zimbabwe contributed a significant portion of this growth on the back of an improving, albeit slow, economic political environment,” Munatsi said.

The group said Zimbabwe’s after-tax profit went up five-fold in the six-month period due to the growth in all revenue lines despite increased costs.

An after-tax profit of $5,5 million was recorded from $940 000 last year. Total assets for the group stood at $374,9 million from $252 million last year due to growth in deposits which increased by 197% in total over the same period.

“Deposits growth for the six months to June 2011 of 54% exceeded market average deposit growth of 25%.”

For Zimbabwe loans and advances were at BWP1,5 billion and deposit were at BWP1,7 billion from BWP0,6 billion recorded last year.

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