IDBZ revenue grows by 55pc

THE Infrastructure Development Bank of Zimbabwe (IDBZ) says its revenue for the year ended December 31, 2018 grew by 55 percent after a significant increase in interest income.

The State-owned financial services institution reported revenue of $13,3 million for the period under review, progressing from income of $8,6 million in the previous comparable period.

“This was driven by strong performance in net interest income,”  IDBZ’s chief executive Thomas Sakala said, on Saturday in a comment accompanying the bank’s financial results.

“The bank received $152,9 million in capital in 2018 which boosted the bank’s income generating capacity. In addition, the bank benefited immensely from increased money market placements as a result of increased liquidity.”

The bank’s fees and commission income also registered a growth of 28 percent from a prior year figure of $2,7 million to $3,5 million in the current year.
“This was a result of increased recoveries from disbursements on road maintenance and development, $15 million and disbursements on water projects, $14,4 million.

“Moreover, the bank earned some advisory fees from its role as the transaction advisor on government projects,” Sakala said.
The IDBZ boss further indicated that fair value losses of  $1 million were recorded on investment property due to depressed activity in the property market and low occupation levels, leading to low rates of return.

However, the bank made a profit of $800 000 against a prior year restated loss of $600 000. The restatement was a result of value added taxes of $1,2 million, which the bank says were not recovered and remitted to the Zimbabwe Revenue Authority on time.

The total comprehensive loss for the year was $2,1 million against the prior year restated loss of $200 000. The bank’s total assets grew by 213 percent from $189 million at the prior year-end to $591 million as at December 31, 2018.

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