Zim's SA-owned banks profitable despite bleak economy | Fin24

Zim's SA-owned banks profitable despite bleak economy

Aug 27 2015 11:54
Malcom Sharara

Harare - South African-owned banks in Zimbabwe have continued to report profits, despite their highly challenging operating environment.

According to results released on Thursday, Standard Bank [JSE:SBK] unit Stanbic Bank reported a 10% growth in profit after tax to US$10.5m for the half-year ended June 30 2015.

Stanbic's total income was up 16.6% to $43.3m, while operating expenses grew at a much lower rate of 5.2% to $25.1m.

CABS, owned by Old Mutual [JSE:OML], also reported a surplus of $10.6m for the six months ended June 30 2015, up from $7.2m prior year comparative. Total income was up 21.43% to $39.4m. Comparatively, operating expenses rose by 6% to $26.7m.  

Regional commercial bank Ecobank reported a $1.6m profit for the half-year ended June 30 2015, from a profit of $839 000 prior year comparative.  

Assets for the bank rose 23% to $194.5m, with loans growing by 10% to $140.8m. Deposits for the period grew by 29% to $130.1m.

Local banks also profitable

Profitability was however not confined to foreign-owned banks, as local banks also reported profits for the period under review.

State-owned POSB posted a $5.4m profit for the half-year ended June 30 2015, up from a loss of $340 288 prior year comparative. Profitability was achieved after the bank recorded growth in total income while expenses came down.

ZB Financial Holdings, another state-owned bank, returned to profitability for the six months ended June 30 2015. Profit for the period amounted to $4.95m, up from a loss of $1.34m prior year comparative. Profitability for the period under review was buoyed by a 19% drop in expenses to $23.45m, following the group’s restructuring in the 2014 financial year.

Private-owned NMBZ Holdings reported a pleasing set of results for the half-year ended June 30 2015, with 128% growth in profit for the period to $3.16m.

Commenting on the results, management at NMBZ said they were achieved under a difficult operating and economic environment.

Going forward, Stanbic chairperson Stanford Moyo said the sustainability of a growth trajectory will require internationally accepted economic reforms and tapping into international capital reserves to meet the country’s capital requirements.

“However, no solid progress has been made, thus rendering a bleak outlook for the economy,” said Moyo.



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