MBCA profit up 43pc

HARARE - MBCA Bank, a unit of South Africa’s Nedbank group, recorded a 42 percent surge in profit to $2,65 million in the half year to June 2015 from $1,87 million in the comparable period due to an increase in net interest income.

MBCA managing director Charity Jinya said the financial institution’s operating income surged to $13 million in the six months to June from $11,5 million reported in the same period last year.

“The positive growth of 13 percent was driven mainly by net interest income due to an increase in loans and advances. Net interest revenue also grew by 11 percent from the same period last year as the bank witnessed an increase in volumes of transaction through our banking channels,” she said.

In the period under review, MBCA’s total operating expenses grew by five percent from $9 million prior year to $9,48 million. Jinya attributed the growth to an increase in staff costs of four percent as the bank recruited new staff members to support a new structure created to roll out new products and services.

“Marginal growth was also experienced in marketing expenses as the bank continued with its thrust of increasing its visibility in the market and participation in corporate social responsibility initiatives,” she said.

The bank’s net loans and advances to customers increased by 23 percent from the December 2014 figure of $92,3 million to $114 million.

Total deposits increased by 36 percent to $189 million from $138,7 million at end of last year. MBCA, however, expressed concern that deposits have remained highly transitory in nature.

“The bank’s credit ratio of 3,67 percent as at June 30, 2015 and non-performing loans ratio of 2,9 percent have remained significantly lower than the market average,” said Jinya. “This is evidence of the robust credit risk and monitoring processes that the bank continues to apply,” she added.

The bank — 76 percent owned by Nedbank — with a core capital of $38,85 million was compliant with the central bank’s $25 million minimum capital requirements and is on course to meet the $100 million capitalisation by 2020.

Jinya noted that MBCA continues to respond to market demands through its various initiatives such as the Home loan product which was launched in April this year.

“A separate small to medium enterprises (SMEs) unit was established in order to provide the much-needed focus in this growth area while an agriculture position was embedded under the business banking unit,” she said.

MBCA Bank was Zimbabwe’s first merchant bank incorporated in 1956 as the Merchant Bank of Central Africa. It was then converted into a fully-fledged commercial bank and adopted the name MBCA Bank in 2004. The bank currently has eight branches spread in the major towns of the country including Bulawayo and Harare.

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