BARCLAYS Bank Zimbabwe, a unit of United Kingdom-headquartered Barclays Bank Plc, profit after tax rose to $2,1 million for the year-ended December 31 2012 compared to $1,4 million recorded in the prior comparative year, driven by cost-cutting measures and growth in incomes.
Report by Bernard Mpofu
Basic earnings per share rose to 0,10 cents from 0,07 cents.
The bank’s interest income, which represents the difference between interest income (derived from interest on loans) and interest expense, increased to $7,6 million during the period under review from $6,7 million in 2011.
Operating expenses reduced to $34 million from $37,5 million. As at December 31 2012, the bank’s total assets stood at $281 million compared to $260 million buoyed by investments in equities, property and loans and advances.
The loan portfolio increased by 57% to close the year at $93 million excluding impairment. The loan loss ratio remained well within 1% reflecting a quality loan book.
“Barclays will continue to grow the asset book in a manner that ensures the quality of our book remains high,” chairman Anthony Mandiwanza said in a statement accompanying the financial results.
“Our deposits continued to grow steadily from $213,7 million in prior year to $224,8 million in 2012. While the market continued to face uncertainties, we made progress towards growing our customer base, deepening our product offering while maintain a robust risk management. We also continued to focus on initiatives to enhance operational efficiencies.”
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Banking sector deposits in the formal banking system grew to $4,4 billion as at December 31 2012 from $3,37 billion recorded in the prior, anchored on growing confidence in the country’s financial services sector.
In a bid to ease the liquidity constraints on the domestic market, Barclays said more measures were required to contain the country’s import bill and subsequent widening trade deficit.
“A key challenge going forward is the need to ensure that the sources of foreign currency are preserved and promoted: exports, foreign direct investment, portfolio investments and Diaspora funds are the source of liquidity under any dollarised or multi-currency system,” Mandiwanza added.
