Categories: Stories

Metbank still in the red

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

(157 VIEWS)

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

ZiG loses steam, falls against US dollar for five consecutive days

The Zimbabwe Gold fell against the United States dollar for five consecutive days from Monday…

November 22, 2024

Indian think tank says Starlink is a wolf in sheep’s clothing

An Indian think tank has described Starlink, a satellite internet service provider which recently entered…

November 18, 2024

ZiG firms against US dollar for 10 days running but people still do not have confidence in the currency

Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), firmed against the United States dollars for 10…

November 16, 2024

Zimbabwe among the top countries with the widest gap between the rich and poor

Zimbabwe is among the top 30 countries in the world with the widest gap between…

November 14, 2024

Can the ZiG sustain its rally against the US dollar?

Zimbabwe’s battered currency, the Zimbabwe Gold, which was under attack until the central bank devalued…

November 10, 2024

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024