Agribank records $4,8m profit

By Freedom Mashava

Agribank’s revival continues after the agriculture-focused financial institution posted a $4,8 million profit in the full year to December 2016.

This compares favourably with a loss of $6,3 million recorded in the same period in 2015.

“This positive performance marked an indication of the solid turnaround for the bank premised on the implementation of a range of turnaround initiatives following the capitalisation of the bank in 2015,” Agribank chief executive Sam Malaba said yesterday.

The bank recorded an increase of 45,2 percent in net interest income in 2016 to close the year with $25,9 million compared to $17,8 million for the prior year.

Malaba said the bank’s non-interest income closed the year at $5,3 million.

“Notwithstanding bank charges reduction in 2016, the bank’s non-interest income remained constant as a result of the implementation of e-banking channels in the second half of the year,” he added.

During the period under review, Agribank had a healthy liquidity position, with a liquidity ratio of 49 percent compared to 37 percent in 2015 while total assets rose 18,6 percent to $204 million.

By the end of last year, the bank was adequately capitalised with Tier 1 capital of $51,1 million compared to regulatory minimum of $25 million. Daily News