Investrust losses hit K58m

INVESTRUST Bank Plc recorded a loss before tax of K58.05 million in 2018 compared to K51.35 million in 2017, company secretary Brian Msidi has said.

And the bank recorded loss after tax of K109.18 million in 2018 compared to K37.99 million in 2017.

Mr Msidi attributed the loss mainly to the reversal of the previously recognised deferred tax asset in respect of carry forward tax losses amounting to K53 million, reduced lending and subdued profit from foreign exchange trading transactions.

“The bank’s net interest income decreased by 19 percent to K39.5 million (2017: K48.9 million) owing to significant reduction in interest income on account of inhibited growth in the loan book and government securities portfolio,” Mr Msidi said.

He said the reduction in interest income was mitigated by a 51 percent decrease in interest expenses to K48.8 million (2017: K99.1 million).

On non-interest income, Investrust was adversely affected by the directive issued by the Bank of Zambia on "unwarranted bank charges.”

“Total transaction fee and commission income recorded a reduction of seven percent during 2018 to K43 million (2017: K46 million),” Mr Msidi said.

On a positive note, Mr Msidi said, transaction fee and commission expenses (bank charges and penalties) reduced by 66 percent to K2.8 million (2017: K8.2 million), mainly as a result of a reduction in accessing funding from the central bank.

Mr Msidi said net foreign currency and revaluation trading gains/ (losses) continued to be constrained.