HomeNewsBanks record upturn in revenue

Banks record upturn in revenue


Commercial banks recorded an upturn in revenue in the first six months of the year as the economy continued to show signs of recovery.

CBZ Holdings unaudited results for the first six months showed that the group recorded a total income of $54,8 million largely due to interest income.

Profit for the half-year amounted to $13 669 805.

Speaking at the company’s analysts briefing on Tuesday CBZ chief financial officer Never Nyemudzo said the bank was on course to meeting its target of $134 million by year end.

“As a bank we are able to offer long-term funding as has been indicated by our increasing the repayment period from 15 months to 18 months,” said Nyemudzo.
During the period under review the group’s share price strengthened from US 16cents the beginning of the year to close at 18 cents having reached a peak of 19,5 cents.

Barclays Bank registered an after-tax profit of $0,7 million during the period under review. Operating income was $15,6 million up 31% on previous year.

Non-funded income contributed 81% to the operating income.

The group incurred a total cost of $14,6 million excluding once off. The bank has set aside $7,8 million (2010: $6,5m) retrenchment cost, 16% up on previous year.

Barclays said it was in the process of working on its mobile and Internet banking offerings and would continue to grow its loan book.

Stanbic Bank achieved a profit after tax of $3,3 million for the half-year ended June. Fee and commission revenues earned from transactions contributed 46% of the bank’s total income of $25 million.

Interest income contributed 43% to bank’s total income. Gross loans and advances for the group increased to $133 million from $100 million during the period under review.

“Economic growth momentum is set to continue in the second half of 2011 though the magnitude will be dependent on the ability of the economy to address challenges bedeviling the operating environment,” Stanbic said.

NMB Bank recorded a profit before tax of $2 729 807 during the first six months of the year resulting in an attributable profit of $2 138 132.

Net interest income for the bank stood at $5 635 314 while non-interest income amounted to $6 207 966 mainly as a result of commissions and fee income..

It noted that impairment losses on loans and advances amounted to $1 346 063 during the period under review where loans and advances amounted to $73 131 880.
Group equity increased by 11% to $20 971 257 from $18 833 125.

FBC Holdings group achieved a profit before tax of $6,43 million reflecting a 129% surge. Total income grew by 39% to close the period at $24,39 million attributed to improvement in the economic environment.

FBC achieved a net interest income of $5,96 million, fees and commissions of $7,81 million while trading income from Turnall Holdings stood at $6,57 million.
However, Ecobank and Interfin recorded losses during the period under review.

Pan African banking group, Ecobank posted a pre-tax loss of $1,8 million down from $5 million on the comparative period. Net revenue for the bank at $2,5 million represented a growth of 600%.

Ecobank however expressed optimism going into the second half of the year as it seeks to contain cost and expects to see a growth in revenue streams.

The bank’s loan book improved to $35,4 million up from $26,9 million in December 2010. Bank deposits marginally increased to $42,1 million from $41,5 million.

Interfin Bank posted a loss $1,9 million during the first six months of the year attributed to high operating costs and low trading volumes as a result of the liquidity challenges facing the banking sector.

The bank’s capital position stood at $21,8 million above the Reserve Bank of Zimbabwe minimum requirement of $12,5 million.

Bank chairman Timothy Chiganze in a statement accompanying the financial results, said the group was positive going into the second half of the year as it continues with its retail expansion drive coupled with introduction of more technologically advanced commercial banking services.

Recent Posts

Stories you will enjoy

Recommended reading