Barclays more than doubles profit

Barclays Bank Zimbabwe’s total income in the full year ended 31 December 2016 rose by 27 percent on the prior year to $58.3 million boosted by increases in net interest income and non-funded income.

The bank remains part of Barclays Plc after it was excluded from a deal between the parent company and South Africa’s ABSA which created Barclays Africa Group in 2013.

Barclays last year announced a sell-off of its African assets, including the local unit.

Profit after tax in the full year period increased by 177 percent from $3.9 million last year to $10.8 million after the bank also reduced impairment losses.

Net interest income increased by 10 percent from $16.6 million last year to $18.3 million, while non-funded income increased by 36 percent to $40 million.

Trading and investment income amounted to $7.96 million while investment securities nearly doubled to $66 million.

Treasury Bills accounted for almost 50 percent of the bank’s investment securities at $33 million, according to finance director, Samuel Matsekete.

The managing director, George Guvamatanga said they were not worried of the amount of TBs they are holding since the government is yet to default, adding that the bank would continue to prefer the security as a better alternative to loans.

“So far the government has not defaulted its treasury bill obligations and it’s very unlikely that it will,” said Guvamatanga.

Deposits increased by 67 percent from $234 million last year to $391.7 million. However, the bank reduced the amount of loans as reflected by a 28 percent decrease in loan to deposit ratio from 62 percent last year to 37 percent due to cautious lending as credit risk remains a threat.

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