IDBZ records bankable projects worth $85,7m
INFRASTRUCTURE Development Bank of Zimbabwe (IDBZ) has converted $85,7 million worth of programmes at concept stage into bankable projects during the financial year 2017.
This comes as the financial services group moves towards fulfilling its mandate for promoting development especially in infrastructure, while maintaining financial sustainability.
Chief executive officer Thomas Sakala, this was also in line with IDBZ’s theme “Building Bankability.”
“The bank’s 2017 work programme and budget were crafted around the theme: “Building Bankability.”
“Consistent with this theme, I am happy to report that significant progress was made to convert a number of projects that were at concept stage into bankable projects.
“During the period under review, the Bank developed to bankability more than $85,7 million worth of projects,” he said.
Some of the projects range from those that were approved including a $14,8 million Kariba housing project, university students and staff accommodation programme worth $34 million as well as the Victoria Falls Municipality water sanitation and health project worth $15,7 million.
The bank also approved a $5,8 million Empumalanga West housing and waste treatment plant rehabilitation project as well as Sumbeni housing project valued at $15,4 million.
Meanwhile, 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 $ 980 000 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 Mr 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.