MBCA Bank profit after tax for the six months to June 2016 slumped by 55 percent compared to the same period in the prior year to $1.2 million due to sluggish economy performance and low investments.
Revenue for the period under review marginally decreased by two percent to $14 million from $14.4 million.
Capital stood at $42.7million and the bank said its on target to meet $100 million threshold by 2020.
Interest income dropped 12 percent to $8.7 million from $9.9 million due to lower interest rates on individual retail loans and interest earned from placements with other financial institutions.
Operating expenses widened by 15.6 percent to $12 million due to implementation of company’s Employees Share Scheme.
The bank’s administration expenses increased by 1.7 percent driven by bank’s expense management initiatives.
Assets decreased by 8.5 percent to $219 million from $239.8 million in June 2015 owing to a fall in cash and cash equivalents and net loans and advances.
The bank’s cautious lending approach and fluctuations on its overdraft facility reduced loan book by 13 percent to $99 million from $114 million in the comparable period.
Non-Performing Loans ratio marginally increased to 6.7 percent from 6.5 percent as at December 2015.
The bank said its $75 million line of credit has been under utilised.- The Source
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