Housing projects push IDBZ profits

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HARARE – The Infrastructure Development Bank of Zimbabwe (IDBZ)’s revenue for the year to December 31, 2017 grew 16 percent to $8, 6 million on the back of strong performance in its housing projects portfolio.

The housing projects portfolio recorded a 281 percent growth in net revenue from stands sales to close the year at $6, 1 million.

Fees and commission income also registered growth of 172 percent with $2, 7 million recorded as income. This was driven by the bank’s advisory and monitoring work on key infrastructure projects.

IDBZ’s total comprehensive profit for the year under review amounted to $0, 98 million compared to a loss $1, 3 million recorded in the prior year.

“The Bank is now benefiting from refocusing to core mandate with revenue and asset portfolio predominantly backed by medium to long term infrastructure business,” said IDBZ chief executive officer Mr Thomas Sakala.

Total assets grew 8 percent to $189 million spurred by growth in the bank’s housing projects portfolio, that is, land and inventory work-in-progress.

Cash and bank balances closed at $41 million, representing a 79 percent growth from prior year, thus reflecting continued sound liquidity management whilst supporting core mandate delivery.

Fair value gains of $1, 8 million were recorded on investment property following renovations which improved occupancy rates and income from leased properties under tenancy.

Mr Sakala said the loan portfolio continued to perform well, particularly the energy portfolio funded from infrastructure bonds and consequently, the Non-Performing Loan (NPL) ratio went down to 7 percent from 9 percent.

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