Nedbank Zim MBCA profit soars to $5.8m

NEDBANK’S Zimbabwe unit MBCA Bank soared to a $5.8 million (R75.07m) after tax profit for the year ended December – 3 percent lower than with the previous year, while Barclays Zimbabwe yesterday lifted per share earnings from 0.18 cents to 0.50c as foreign currency shortages pushed up deposits and non-interest income thresholds.

The bank continued to enjoy strong liquidity support and credit facilities from its parent company.

Last year, the bank had a $48m core capital base at a time when most businesses in the country were struggling to secure offshore funding facilities. “Total deposits grew significantly by 23 percent to $236.7m in line with the bank’s strategic deposit mobilisation initiatives and difficulties in accessing foreign currency by some clients,” MBCA managing director Charity Jinya said.

The bank also recorded a marginal increase in net interest income during the year to end December 31 and a 17 percent growth in non-interest revenue. “The growth in non-interest revenue was mainly on the back of the volatile movement of some currencies,” said Jinya.

The bank is also pursuing compliance with Zimbabwe’s re-clarified indigenisation policy.

Sources and executives in Zimbabwe say the government will soon gazette the new position on indigenisation. The new position allows existing foreign investors to keep majority control in local businesses.

It will also make it official for foreign banks to retain majority control, but they will be required to give some shares into employee and community share ownership schemes.

Massive surge “Employees were awarded shares during the year. This will result in employees owing 7.5 percent of the bank’s shares through the Employee Share Scheme,” MBCA chairperson Willard Zireva said.

Another Zimbabwean bank, Barclays, also reported a massive surge in after-tax profits to $10.8m for the year to December 2016 compared to $3.9m the previous contrasting year.

The upswing saw the basic earnings per share income rise by 0.50c from 0.18c per share recorded last year.

Barclays is bracing for the planned divestment of Barclays, which is scaling down its investments in Africa.