ReNaissance makes $1.2 billion profit in first year

ReNaissance Merchant Bank posted a net profit of $1.2 billion in its first year of operation and was highly rated by the Reserve Bank of Zimbabwe when it examined the bank's operations.

The bank says it was given a strong (1) rating during a CAMELS examination by the central bank.

The CAMELS test looks at capital adequacy, asset quality, management, earnings strength, liquidity ratios and sensitivity to risk.

It ranges from strong (1) to unsatisfactory (5).

The bank says it achieved the highest rating possible in all categories.

The bank started in 1999 as an advisory service and was responsible for some large floatations which included the demerger of Astra into three listed companies as well as the listing of Zimnat Lion.

According to its results for the year ending December, net interest income stood at $823.2 million.

Fees and commissions contributed $90.3 million while advisory services brought in $1.4 billion.

It says all revenue centres of the bank recorded an operating profit with a return on invested capital of 586 percent.

Its balance sheet grew from $200 million at inception to $11 billion.

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