Old Mutual Zimbabwe profit up 600 percent

Interest income was lower by 7.4 percent from $100.8 million in the previous year to $93.3 million on the back of the central bank’s directive to reduce interest rates while fees and commission income increased by 4 percent to $60.3 million.

“Banking interest income was down due to impact of interest rate cuts at the end of 2015 while fees income was up as a result of increasing transaction volumes in the banking business”, finance director, Takura Mudekunye said.

Credit loss and impairment charges declined by 79 percent from $16 million in the previous year to $3.5 million due to recoveries from previous NPLs.

“Credit loss and impairment charges went down due to recovery of previously non-performing loans as well as effective management of NPLs,” said Mudekunye.

Chief executive, Jonas Mushosho said CABS’s non-performing loans ratio (NPL) is at 8.2 percent.

The investment services unit registered an 8 percent decline in operating profit from $7.2 million in the previous year to $6.6 million weighed down by a decrease in net client cash flows.

Net client cash flows value declined by 57 percent to $29.5 million from $68.9 million on the back of uncertainty surrounding the introduction of bond notes.

Funds under management increased by 13 percent from $1.6 billion in the previous year to $1.8 billion.

Loans and advances at $583.2 million were up 4 percent while deposits are also up by 4.3 percent to $624.5 million.

The amount of treasury bills (TBs) that the group holds increased by 13.5 percent from $78.3 million in the previous year to $88.9 million.

Mushosho said the banking segment, CABS has treasury bills (TBs) amounting to $79 million on its balance sheet.

Capital adequacy ratio maintained at 18 percent against a regulatory minimum of 12 percent.- The Source

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