ABC profit down from P53.3 million to P3.8 million

Regional banking group, African Banking Corporation, had a poor showing last year with net profit plummeting from P53.3 million to P3.8 million. But this was largely because of the strengthening pula which firmed from P5.85 to P4.86 to the greenback.

The group also disposed of ABC Leasing in Mozambique in March incurring a loss of P16.9 million on the disposal. The subsidiary had made a loss of P1.2 million in the first quarter.

It invested 2 million euros in Iroko Financial Products, a London-based debt capital markets origination and trading operation which specialises in African markets.

It says the strong pula, rationalization costs, start up costs of Iroko and implementation of its IT platform saw its operating profit plunge from P91.3 million to P41.2 million.

Interest and other income had increased from P148.9 million toP198.1 million but net interest income rose marginally from P53.2million to P556.2 million.

Other income was, however, down from P168.5 million to P107.5 million. Total income declined from P203.9 million to P161.9 million. Exceptional items took another P20.1 million leaving income before taxation at P19.8 million down from the previous year's P74.3 million..

The group says it acquired 68 percent of Tanzania Development Finance Company in December.

ABC Botswana showed good growth with net profit increasing by 10 percent. It is now a primary dealer for Botswana government bonds.

The Mozambican banking subsidiary delivered a return on equity of 21 percent.

A BC Zambia and Microfin Africa, the Zambian microfinance operation, both had outstanding results. ABC Zambia is now one of the primary foreign currency dealers.

The Zimbabwean operations also did quite well.

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