Struggling MetBank has reduced its losses to $130 000 in the six months to June from $3.5 million registered in the same period last year, the bank said.
In the period under review, the bank’s net interest income declined significantly from $6.6 million in prior year to $2.2 million while non-interest income was flat at $959 000.
Wilson Manase, MetBank’s chairman, said the financial institution was working on cleaning its loan book to help improve the bank’s liquidity position.
“Provision for doubtful debts decreased by $1.9 million from $11.8 million as at December 31, 2014 to $9.9 million as at June 30, 2015,” he said adding that the bank continues to be aggressive in its loan collection and recovery effort.
This comes as the struggling bank was recently removed from the central bank’s watch list of distressed banks after it improved its capital liquidity to $31.6 million, against the required minimum capital of $25 million.
Manase said Metbank was also making efforts to reduce its operating expenditure by closing two branches and an agency during the period under review.
The bank also converted its $7.3 million current liabilities into equity, increasing its capital.
Central bank figures show that Metbank is one of the four banks that registered a loss in the first six months of the year compared to 14 that remained profitable.- The Source