Barclays Bank of Zimbabwe says it will be operating under a dual brand by October this year following its acquisition by FMB Malawi last year.

Last october, FMB received regulatory approvals to acquire an effective 42,7 percent shareholding in the bank, completing its takeover of the bank after Barclays Plc said it was exiting the African market to focus more on its transatlantic operations.

Managing director Samuel Matsekete told shareholders at its annual general meeting that the Bank’s brand evolution will see the dual brand running for the next two years upon which Barclays Bank Plc would have completed its exit.

“This is to ensure a smooth process that will compromise our operations and customer satisfaction. Therefore, brand evolution will see the Barclays Bank of Zimbabwe brand run until October, upon which it will be replaced by a dual brand which will run for two years more,” he said.

The Bank is currently in the process of migrating the IT systems from Barclays Plc.

Matsekete meanwhile said total income in the four month period to April was 16 percent above budget but 40 percent below the same period last year.

On the income mix, net interest income for the four months was 45 percent ahead compared to 30 percent in the prior period while non-interest income was up 55 percent. Last year, growth was at 70 percent for the same period.

Matsekete said the operating costs were seven percent down, with staff costs constituting 52 percent of total expenses.

The cost to income ratio for the period was at 58 percent while the loan loss ratio was 0.3 percent.

According to Matsekete, interest earning assets increased 81 percent to $404.9 million compared to $223.3 million in prior year as a result of an increase in investment securities.

Bank deposits were four percent lower, amounting to $425 million compared to $444 million in 2017.

The banks loans to deposit ratio declined to 25 percent from 26 percent while the capital adequacy ratio improved 1 percent to 29 percent from 28 percent.

- Source