MBCA bank to open more branches

By The NewsDay | Aug. 31, 2016 | 2 Min read

MBCA Bank remains positive about the economic outlook as it focuses on increasing its footprint by rolling out more branches across the country and enhancement of technological platforms, an official has said.

BY MTHANDAZO NYONI

MBCA chief finance officer, Antony Makonese, told NewsDay in an emailed response that even though things were currently tough, the bank was poised for growth in the long run.

“The bank remains positive about the economic outlook, in the long term, as we focus on increasing our footprint through roll out of branches and enhancement of technological platforms,” Makonese said without stating the number of branches they were going to roll out.

“The bank will also continue to work on measures to improve on cost effective funding for products and services relevant to our market and clients.”

Currently, the bank has more than 10 branches across the country.

Makonese said MBCA posted profit after tax of $1,2 million for the six months to June which was 54,8% below the corresponding period in the previous year primarily due to decrease in interest income and reduced transactional business from companies and individuals who were adversely impacted by low economic activity.

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He said the bank also suffered a decrease in interest income from loan book due to depressed economic conditions coupled with softening of interest rates.

“Cash and cash equivalents were adversely impacted by increased cash withdrawals by clients on the back of market wide cash shortages during the period under review,” he said.

Makonese added that net impairment loss on financial assets increased from prior year due to deteriorating economic environment.

“Consequently, total assets decreased by 10% to $219 million from $244 million as at 31 December 2015,” he said. Revenue for the period under review marginally decreased by 2% to $14 million from $14,4 million.