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BancABC Zim props ABC Holdings

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BancABC Zimbabwe, a subsidiary of ABC Holdings Limited, was the major contributor to the groups’ profit of Pula 141 million for the year ended December 31.

The local unit contributed 39% to the profits.
BancABC Botswana, Mozambique, Tanzania and Zambia contributed 20%, 20%, 2% and 23% respectively.

Net interest income stood at P412 million indicating a 38% surge from 2010.

ABC Holdings chairman Howard Buttery said in a statement BancABC Zimbabwe recorded a 106% increase in attributable profit to P55 million from P27 million the previous year.

He said the increase was due to strong business growth recorded during the year under review, which gave rise to higher net interest and non-interest income that increased by 137% to P136 million and 51% to P129 million.

“The liquidity situation in Zimbabwe deteriorated in the second half of the year,” Buttery said.

“This is expected to continue in the foreseeable future as there is no lender of last resort.

“The situation is further exacerbated by the fact imports currently significantly exceed exports in a currency the central bank cannot print.”

He said the bank had undertaken to improve liquidity at the expense of profitability.

“As a result, while business is projected to register significant growth, profitability will not grow by the same magnitude,” he said.

Buttery said the group plans to raise $50 million to boost the liquidity position of its units.

African Development Corporation, a 23,2% shareholder in the group, will be the underwriters.

African Banking Corporation of Zimbabwe Limited chairman Ngoni Kudenga said profit after tax for BancABC Zimbabwe increased to $7,3 million from $3,4 million the previous year due to continued growth on assets and liabilities in the first half of the year.

The bank recorded an increase of net interest income of $19, 9 million from $8,5 million the previous year.

Kudenga said the bank would be opening more branches in 2012 and e-channels were expected to increase.

“The bank is also set to join the ZimSwitch link for ATM transactions again in the second quarter of 2012,” he said.

“On the economic front, the bank has seen an easing on the liquidity situation particularly in the last few weeks.

“This should see 2012 perfomance remaining on track.”

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