According to Mutandagayi, the increase is attributed to a 19 percent growth in income from trading and lending activities and a 38 percent increase in re-insurance income.
He said that the increase in income from trading and lending activities was influenced by the release of discounts on Treasury Bills, an 18 percent reduction in funding costs as well as a lower charge for loan impairments.
Re-insurance premiums increased as a result of renewals which were brought forward to the first quarter of 2016. Of the Gross Premium Written to April 30, 2016, 86 percent were written from local operations while the remainder was sourced from Mozambique.
The reduction in the net life assurance income of 21 percent was largely influenced by increased death claims on the ZB Cash Funeral Cover business. Life assurance expenses for the period increased 33 percent over the same period last year.
Mutandagayi said the current market-wide shortage of bank notes has affected the growth of non-funded income as aggregate customer transaction activity fell.
He said revenue generation remained very difficult in the constrained environment, forcing the group to focus on cost management.
The group’s cost to income ratio for the period stood at 78 percent compared to 76 percent in the prior year. He said the annual target cost to income ratio for 2016 is 71 percent.
On a net basis, the cumulative profit for the period amounted to $2.3 million compared to $2 million in 2015 in line with the group’s budget.
Deposits remained at December, 2015 level of $270 million.- The Source
Related stories:
Zimbabwe Asset Management Corporation bails out seven major companies
Zimbabwe state asset manager takes up $100m in bad loans
NMB to sell $6 million bad loans to Zamco
RioZim gets shareholder approval for Zamco deal
Mobile money growth threatens traditional banking in Zimbabwe
RioZim – from death bed to sexy once more…
(86 VIEWS)
