THE Infrastructure Development Bank of Zimbabwe (IDBZ) has overturned a loss- making position to register a profit of $624 420 for the financial year ending December 31, 2017, after being spurred on by a strong performance in housing projects.
BY TATIRA ZWINOIRA
Housing projects overturned a loss-making position from a $1,5 million loss recorded in 2016.
In a statement accompanying IDBZ’s results last week, IDBZ chairman, Willard Manungo confirmed the positive results were due to good performance in the housing scheme.
“I am pleased to report that the bank continued to impact positively on the country’s development outcomes during the period under review.
It has managed to perform well in the development of bankable projects in various sectors particularly the housing sector and in project implementation and monitoring of public sector investment programme (PSIP) projects whose level of execution has continued to improve towards attainment of key milestones to project completion,” he said.
“Notable progress was made on the implementation of on-going projects since my last report. These include; the New Marimba Housing Project in Harare which has delivered a total of 357 high- and- medium density residential stands; and Clipsham Views Housing Project in Masvingo which delivered 704 low-density residential stands and 69 commercial and institutional stands.”
Housing stands in New Marimba medium-density and Clipsham Views housing projects helped IDBZ register an increase in net income on property sales of $2,3 million up from a 2016 comparative of $529 503.
The bank’s revenue grew 15,63% to $8,58 million during the year under review from a 2016 comparative of $7,42 million. This was largely attributed to a 281% growth in net revenue from stand sales to close the year at $6,1 million for housing development.
During the period under review, IDBZ raised $26,6 million for housing projects.
Housing projects are being spurred on by growth in banks offering mortgage financing for low cost housing showing ready buyers for houses.
In the 2018 National Budget, government said would mobilise $182,4 million in support of several housing development strategies aimed around providing low cost serviced land for housing development.
Despite the uptick in profit after tax, the net interest income was down 39,84% to $3,51 million from $5,84 million recorded from the 2016 similar period largely due to a decline in loans and advances to large corporates.
The non-performing loan ratio went down from 9% to 7%.
IDBZ chief executive officer, Thomas Sakala said the bank was refocusing to its core mandate of revenue generation and its asset backed portfolio in the medium to long term.
“Fair value gains of $1,8 million were recorded on investment property following renovations which improved occupancy rates and income from leased properties under tenancy. Total assets grew by 18% to $189 million spurred by growth in the bank’s housing projects portfolio, that is, land and inventory work-in-progress,” he said.
The bank’s current ratio was meanwhile 1,4 showing the bank had more than enough to cover its current liabilities if they come due.