HomeNewsTetrad returns to profitability

Tetrad returns to profitability

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Financial Services group, Tetrad Holdings Limited, returned to profitability for the six months ending March 31 2012 after achieving an after-tax profit of $5,4 million buoyed by its flagship investment banking unit and property division.

During the same period last year, the group recorded a loss of $306 000 as future merchant banking in the country remained bleak due to liquidity constraints on the domestic market.

Tetrad Investment Banks (TIB) bottom-line stood at $742 122 compared to a loss of $564 777 achieved in the previous year underpinned by growth in net interest income.

The banks net interest income increased by 97% to $2,3 million in the current year on the back of growing deposits in the banking sector from $1,17 million recorded during the same comparative period. The banks total revenue increased by 132% to $4,2 million during the period under review.

TFS Management Company, the groups asset management arm posted a loss of $269 139 compared to a profit of $98 238 due to poor performance of the Zimbabwe Stock Exchange.

Funds under management amounted to $40 020 675 up 8% from the same period last year.

Management is very confident that the unit will return to profitability and the loss will be reversed by year-end, said group chairperson Miccah Moyo in a statement accompanying financial results.

A high claims ratio affected Tetrad Hail Insurance profitability despite achieving a 4% growth in gross premium compared to the same period last year.

Total assets stood at $79 million up 225 from last years figure of $64 million as TIB plans to transform into a commercial bank. The banks capital was at $13,4 million, a figure above the $12,5 million prescribed minimum capital.

Minimum capital refers to capital representing a permanent commitment of funds by shareholders of a banking institution, which is available to meet losses incurred without imposing a fixed unavoidable charge on the institutions earnings.
This capital is among many lines of defence against losses in the banking sector.

In March, group chief executive officer Emmanuel Chikaka said TIB was seeking regulatory approval to roll out its retail banking operations.

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