Tetrad losses widen

HARARE - Financial group Tetrad Holdings Limited (Tetrad) losses widened to $11,8 million in the half year to March 2014 from $2,9 million incurred in prior comparable period.

The group’s banking unit Tetrad Investment Bank (TIB) was the worst performer, contributing $10 million to the total loss.

During the period under review, TIB recorded a 17 percent slump in deposits from $92,9 million to $80,05 million.

“At TIB, total income improved by 160 percent to $604 140 from $365 262, whilst operating expenses rose from $4,6 million to $10,4 million, a growth of 12 percent,” the group said.

“A comprehensive loss of $10 million was posted for the half year in comparison to the comprehensive loss of $8,3 million,” it said, adding that a clean-up of its loan book eroded profits due to bad debt provisions and suspended interest.

This comes as the group’s shareholders recently approved the acquisition of a controlling stake in TIB by a Russian group Horizon Capital.

The group’s asset management subsidiary, TSF Management Company (TSF), incurred a $374 304 loss after tax, up from $95 412.

The unit’s total income decreased by 58 percent to $233 084 from $552 463 recorded prior year.

“Total expenses decreased by seven percent to $607 388 from $652 593 incurred in the last half year financial period last year,” the group said.

TSF’s funds under management were down 22 percent from $46,2 million to $35,8 million.

The group’s property division, Tetrad Properties (Private) Limited recorded a profit after tax of $112 324 in the period under review compared to $641 159 recorded prior year comparative.

“Rental income decreased by 75 percent to $207 550 from $823 428 received in the year 2013 due to restructuring of the property portfolio within the group.”

“Operating expenses recorded a decrease from $359 989 in the previous year to $234 689 in the current year,” said Tetrad.

The value of investment properties as at March 31, 2014 was $5,7 million a slump from the $9 million recorded in prior comparable period.

THI Insurance (Private) Limited, the group’s insurance arm, realised an underwriting profit of $1 million, down from $1,2 million achieved prior year.

“This was a result of reduced commissions for the business in the six months to March 2014,” the group said.

The group said its other short- term insurance business contributed 22 percent to the total gross premiums written compared to the 14 percent it contributed prior year.

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