Atlas Mara saw its non-performing loans ratio (NPLs) going down to 13,1% in the first quarter of 2017 steered by the hiving off of $29,5 million worth of loans to the Zimbabwe Asset Management (Zamco).
BY FIDELITY MHLANGA
Atlas Mara own BancABC, which has operations in five African countries including Zimbabwe.
In the first quarter 2017 interim management statement, the group said the NPLs ratio had declined from 13,3% registered in the fourth quarter of 2016.
“The non-performing loan ratio at end March is at 13,1% (Q4 2016: 13,3%), with the reduction driven mainly by the improvement in the NPL ratio in Zimbabwe following a resolution reached with the Zimbabwe Asset Management Company regarding $29,5 million of NPL assets held in Zimbabwe,” it said.
“We concluded the sale of $29,5 million worth of non-performing loans to Zamco resulting in significant decrease in NPL ratio. This agreement also boosted the Q1 profit by ca. $1,7 million as net recovery from this NPL sale.”
Atlas Mara said the group had point-of-sale terminal roll out, resulting in BancABC having 187 merchants, 463 deployed devices thereby achieving $5,3 million in transactions.
The group said it continued to make strong progress in the development of digital initiatives.
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“We commenced our Merchant Acquiring initiative in Q4 2016, and have continued to see significant growth as we roll out across our platform. In Q1, the number of terminals deployed increased by 82% from 384 in Q4 2016 to 700 in Q1 2017. Zimbabwe, Mozambique and Zambia are live, while the remainder of our countries are expected to go live by end of Q2,” Atlas Mara said.
Atlas Mara said BancABC had executed an agreement with Telecel Zimbabwe for issuance of companion cards to over 500 000 mobile money customers across Zimbabwe.
In its unaudited first quarter results for the period ended March 31 2017, Atlas Mara reported a profit after tax of $5 million from a loss after tax of $6,7 million in the comparable period in 2016.
This group’s profit represents the largest quarterly profit reported by the company since its inception.
