ECOBANK Zimbabwe Limited has posted an increase in net interest income of $5,9 million for the half year ended June 30 2014 from $4,6 million in prior year buoyed by increased trade finance activities.
TARISAI MANDIZHA BUSINESS REPORTER The bank said reduced cost of funds and an increased customer base had also helped in the increase in net interest income.
In a statement accompanying the bank’s abridged unaudited financial statement, Ecobank chairperson David Whatman said the operating income before loan impairments was up 24% compared to the first half of last year.
“The bank has grown its net operating revenue for the period by 14% year on year. This has been achieved on the back of increased trade finance activities, reduced cost of funds and increased customer base driven by wider network of branches and ATMs,” Whatman said.
“The bank continues to pursue a measured growth strategy buttressed by increased investment in human capital and distribution channels.”
He said the pursuit of this strategy has resulted in the bank’s operating cost rising by 12% year on year and profit before tax of $1,4 million was above target and management was confident of achieving the budget for 2014.
In the period under review total assets of $126 million was down slightly from $127 million as at December 31 2013.
“The static position is attributed to a cautious approach in the granting of credit and a slow uptake of the lines of credit by companies as they are struggling to keep afloat amid the deepening liquidity crunch,” he said.
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Commenting on the bank’s capitalisation, Whatman said the bank has submitted its capitalisation plan to the central bank before the June 30 deadline.
Shareholders had indicated their willingness and ability to capitalise the bank to at least $100 million by December 2020, he said.
