BancABC deposit capture tops $50 million

25 Apr, 2018 - 13:04 0 Views

eBusiness Weekly

HARARE – Atlas Mara Zimbabwean unit, BancABC, has reported more than $50 million in deposit capture in the southern African country for the year ended December 31, 2017 on the back of a  strong agency banking program.

The group said the agency banking program continues to be a strong  driver of customer growth and deposit capture.

In the period under review, the group’s deposits were broadly flat on a  constant currency basis, with a $94, 3 million increase driven by  corporate banking clients in Zimbabwe being offset by lower deposits in  Botswana, Mozambique, Tanzania, and Zambia.

The group said it upgraded its Zimbabwean unit digital platforms including reintroducing mobile banking and adding instant inter-bank  transfers while 1 000 point of sale terminals were rolled out.

“We expanded it in 2017 including in Tanzania and Mozambique, adding  hundreds of new agents and thousands of new customers. We also achieved  more than $50 million in deposit capture in Zimbabwe in the year,” group  chairman Bob Diamond said on Tuesday in a statement accompanying the  results.

“We deployed a new, best-in-class internet banking solution in Rwanda”.

Added Diamond “Our business in Zimbabwe reported strong operating  profits boosted by Non-Preforming Loans (NPLs) recoveries, continued  focus on cost reduction and fair value gains booked on some core banking  and other assets”.

Atlas Mara loan impairment charge stood at $22, 3 million which is 44, 8  percent higher than the prior year charge of $15, 4 million.

This was largely due to additional impairments in Mozambique, Rwanda,  Tanzania and Zimbabwe and the impact of lower IFRS 3 adjustments.

In 2017, the group reported gross recoveries of $20.1 million compared  to $4, 3 million in the previous year while its Zimbabwe unit, BancABC recorded significant progress in NPLs recoveries driving a substantial  improvement in NPLs ratio.

“In Zimbabwe, despite an increase in recoveries, we also experienced an  increase in portfolio impairments resulting in an overall increase in  the impairment charge for the year. We continue to focus on  restructuring and recovering further from the legacy NPL book and have  made good progress on a couple of large single name exposures in Zambia  and Zimbabwe both to increase profitability and to reduce our overall  NPL ratios to closer to comparable peer levels,” Diamond said.

Atlas Mara recorded a net income of $45, 4 million in 2017 from $8, 4  million the previous year, making it the third consecutive year of  profitability for the Company.

In the outlook, the group said it would continue to focus on sustainable growth throughout its businesses, making sensible and  supportive investments. – New Ziana

Share This:

Sponsored Links