Barclays Bank of Zimbabwe Limited profit for the half year to June 30, 2018, jumped 43 percent to $13,6 million from $9,5 million as interest income improved during the period.

This translated to basic earnings per share of 0,63 cents compared to 0,44 cents achieved in the same period last year.

Net interest income grew by 88 percent from the same period in the prior year driven by growth in interest earning assets.

During the period under review, net interest income constituted 47 percent of total income compared to 29 percent for prior year, due to the growth in interest earning assets.

“The Bank’s results reflect resilience and strong performance against a macro-economic environment which, whilst some improvements were noted, remained quite challenging. Cash shortages and constrained market capacity to service cross border payments persisted,” said Barclays in a statement accompanying the bank’s financial results.

Surplus liquidity was invested mainly in Government securities to optimise return on assets, whilst efforts to grow customer assets continued.

Deposits increased by 19 percent over the period. Barclays, however, indicated the impairment charge increased to $1,7 million during the period under review from $1 million of prior year on the back of the increased general provisions driven by the growth in loan book and investments in treasury bills as well as provisions made to align with the requirements of the new International Financial Reporting Standard 9 (IFRS9).

Gross loans and advances to customers grew by 27 percent to $148 million from $117 million at the end of 2017.

Growth in the loan book resulted in an improved loan to deposit ratio that closed at 33 percent from 27 percent a year earlier.

Barclays said they would continue to sustain disciplined lending practices especially considering the high credit risk environment currently prevailing in the market.

The bank’s total capital adequacy ratio closed the half year at 25 percent, which was above the regulatory minimum of 12 percent reflective of significant capacity to grow assets.

Similarly liquidity ratio at 76 percent during the period was significantly above the regulatory minimum of 30 percent.

Barclays indicated it was on course to meet its core capital level of $100 million by 2020 as per the Reserve Bank of Zimbabwe (RBZ) requirement.

Barclays did not declare a dividend as the bank is reviewing its balance sheet to ensure it is optimally structured and focused on its core banking activities.