Infrastructure Development Bank of Zimbabwe profit up

The Infrastructure Development Bank of Zimbabwe (IDBZ) achieved a 16 percent increase in net profit to $196 572 in the six months to June compared to $169 720 in the same period last year.

In a statement accompanying financial results chief executive Thomas Sakala said profitability for the period was weighed down by an impairment charge on a non-performing loan to Meikles Limited.

“The loan is a residual exposure from discontinued non-mandate business of availing short term facilities to corporates,” he said.

For the half year period the Bank’s net interest income declined to $2.36 million compared to $2.81 million same period last year.

Fee and commission income was at $961 901 an increase from $399 679 over the same period in 2016, while the Bank’s total revenue amounted to $4.57 million an increase from $3.25 million achieved last year.

In line with its mandate, the state run institution, has to date mobilized $8.1 million through private placements of housing bonds and Sakala said the balance of the funding requirements will be put to a public offer in the second half of the year.

The government of Zimbabwe is the bank’s major shareholder with a 77.99 percent stake, other shareholders include the Finnish Fund for Industrial Cooperation Ltd, the African Development Bank, the German Investments and Development Company, Netherlands Development Finance Company and the European Investment Bank. – The Source

(121 VIEWS)