MBCA profit falls by half

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

(60 VIEWS)