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

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.

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Comments have been closed for this article.
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What's your view on deep sea mining?

Previous results · Suggest a vote

Loading...