eBusiness Weekly
HARARE – MBCA Bank said on Tuesday it recorded a 40 percent jump in after tax profit to $7.9 million for the full year ended December 2017 on the back of a rise in non-interest income.
The non-profit income, at $13.5 million from $10.9 million was driven by a growth in volumes of transactions on new and existing products.
Net interest income on the other hand also grew to $16.6 million from $15 million the previous year.
Managing director, Dr Charity Jinya said the bank improved its cost management during the period.
“The bank also benefited from volatility of some currencies as a result of developments on the global market,” she said.
In the period, the bank massively pushed its point of sale machines footprint from 26 in 2016 to 1 605 last year as it sought to shield its clients from the current cash shortages.
MBCA also introduced a banking application and installed additional automated teller machines in Harare and Bulawayo.
“The bank experienced a significant growth in the volumes of transactions on digital transactions. This put a strain on the system resulting in the challenges affecting the digital channels,” Dr Jinya said.
“Year on year increase in volumes on card based channels was over 400 percent.”
In terms of contribution to overall income which closed the period at $34.4 million up from $31.2 million, the retail banking division contributed 41 percent, wholesale banking 33 percent and treasury division 25 percent.
The bank’s assets grew by 23 percent to $369 million driven by its investment in treasury bills and the Afreximbank Trade Backed Securities.
Loan and advances made up 27 percent of the assets while cash and cash equivalents were at 46 percent down from 57 percent last year.
Meanwhile, MBCA chairman, Willard Zireva said the bank will this year rebrand to Nedbank Zimbabwe to leverage on benefits from its parent company, South Africa’s Nedbank Group.
“The rebranding will also position the bank appropriately against other international and regional banks operating in Zimbabwe,” he said. – New Ziana
