AFRASIA Kingdom Zimbabwe (ASKL) profit for the year-ended December 31 2012 rose to $3,2 million from $782 031 driven by the group’s flagship banking unit, which returned to profitability.
Business Reporter
Kingdom Banking Limited posted a $1 million profit from a $1,6 million loss driven by a strong loan book.
Loans and advances made by Kingdom Bank rose to $132 million from $116 million.
The group’s net interest income after impairments rose to $20 million from $14 million on the back of impairment recovery of $782 635. In 2011, ASKL — formerly Kingdom Financial Holdings — had an impairment allowance of $9,9 million.
AKZL assets grew to $201 million from $157 million recorded in the prior year buoyed by balances with banks and cash which stood at $31 million from $2,5 million.
“The outlook for the financial markets remains challenging. “The forecast economic uncertainty means that customers remain vulnerable and thus, we expect a moderate credit growth,” AKZL chairperson Busi Bango said.
“During the period under review, liquidity and funding remained a key focus for the group.
“The liquidity position continued to be stable due to the group’s conservative approach . . .”
MicroKing Finance, the group’s microfinance arm also registered strong growth during the year under review as appetite for loans remained high.
Kingdom Asset Management profit after tax was up 22% to $161 823 on the back of growing business.
Funds under management rose to $48 million from $34,2 million. The group’s exposure to the equities market nearly trebled to $9 million despite the subdued performance of the Zimbabwe Stock Exchange.
The group’s growth comes at a time when the entire banking sector continues to witness growth in deposits and credit on the back of growing confidence.
Total bank deposits were up 30,7% to $4,4 billion as at December 31 2012 compared to the prior year.
Loans and advances amounted to $3,5 billion, representing a growth of 27,5% during the same period under review.
