Harare – Metbank reported a profit after tax of $2.67 million in the half year ended June 30, up 555 percent from $403 453 from the previous financial year driven by austerity cost cutting and containment measures.
The Bank’s Chairman, Wilson Manase said through the on-going monitoring aimed at maintaining asset quality, the Bank managed to contain Non-Profit Loans (NPLs) ratio to 1.78 percent which is within the regulatory threshold of 5 percent.
“The Bank continues to be aggressive in its loan collection and recovery efforts whilst also underwriting a new book in question.”
In the period under review, Manase said of concern has been the slowly deteriorating Balance of Trade which stood at a deficit of $784 million at the end of the first quarter of 2018, down from a deficit of $423 million over the same period last year.
“This happened despite government banning some forty-three import commodities in a bid to promote locally manufactured products. An extension of this deficit has the undesirable effect of promoting premium pricing on imports,” he said.
Manase said the Bank’s business development efforts continue to bear fruit as evidenced by the growth in the deposit base from $160.34 million as at December 31 2017 to $166.20 million and a new and much stronger balance sheet is now emerging whilst a solid base of sustainable profits has now been set.
During the period under review lending continued to be predominantly on loans to the productive sectors constituting 66.28 percent of total sector loans while 19 percent were channelled towards consumption.
Net income interest stood at $9 323 860 compared to $5 859 239 in the prior year.
“The banking sector recorded improved earnings on the back of non-interest income, mainly fees and commissions, as a result of the rise in digital transactional volumes, as well as interest income from the core business of lending.”
Going forward, Manase said the Bank continues to pursue its five year strategic plan through focusing on property development, mortgage financing and commercial banking.
“The strategy allows the Bank to satisfy its customers, increase shareholder value and improve service delivery through roll-out of a full range of e-banking and financial inclusion products,” he said.
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