State-owned Agricultural Development bank of Zimbabwe (Agribank) reported a profit of $2.18 million in the six months to June from $2.16 million recorded in the comparable period last year on increased income.
Net interest income grew by 14.2 percent to $13.03 million from $11.42 million previously, while non interest income grew 4 percent to $2.2 million.
Total income increased by 21.9 percent to $16.97 million from $13.93 million achieved in the comparable period last year.
Total operating expenses increased by 5.2 percent to $11.45 million from $10.88 million in the same period last year.
Loan and advances decreased by 19 percent to $80.28 million as a result of transfer of loans to the Zimbabwe Asset Management Corporation (ZAMCO), after a total of $17 million bad loans was transferred to ZAMCO during the period under review.
Non-performing loans declined to 14.89 percent from 17 percent previously, and the bank is targeting a single digit by yearend.
“The bank targets to achieve a single digit NPL ratio by December 2017 against regulatory target of 5 percent,” Agribank chief executive, Sam Malaba said.
The bank holds treasury bills (TBs) worth $76.6 million, representing 36 percent of the total assets.
Of the total amount of TBs held by the bank, $40 million relates to capitalisation of the bank.
Deposits increased by 120 percent to $105.33 million as a result of growth in demand and savings accounts.
Total assets grew 5 percent to $214.99 million on increased deposits.
The bank’s core capital grew to $52.48 million from $51.08 million previously.
Malaba said the bank will continue to engage the government in pursuance of further capitalisation and strategic partnerships, in order to achieve the $100 million requirement by 2020.
“The bank declared a dividend of $914 000 to the shareholder (government) which the shareholder re-invested back into the bank as further capitalisation. This gesture of support from the shareholder is much appreciated,” said Malaba.
Malaba said the bank will continue to focus on lending notwithstanding the current harsh operating environment, in pursuance of its mandate to support agriculture financing and development
The bank, in conjunction with FBC Bank, would raise $20 million agro bills for 2017/18 agricultural season, Malaba said.
The bank is targeting to disburse $5 million in support of smallholder sugarcane producers, with confidence that it will recover more than 95 percent in repayments.-The Source