METBANK says it will focus its lending business on mortgage financing and commercial banking products that promote financial inclusion under a strategic plan that will determine the direction of the institution on a five-year horizon.
BY FIDELITY MHLANGA
The lender’s mortgage business will prioritise property development, while its commercial banking activities will focus on e-banking and financial inclusion products, in an effort to meet the needs of customers and unlock shareholder value.
In the half year period ended June 30 2018, Metbank reported that net-profit surged 555% to $2,67 million from $403 453 recorded in the prior year on the back of cautious lending and aggressive loan recovery.
“The bank reported a profit after tax of $2,67 million in the half year 2018 up 555% from $403 453 recorded the previous year,” chairperson Wilson Manase said in the bank’s half-year financial report.
“Through the on-going monitoring aimed at maintaining asset quality, the bank managed to contain the NPLs ratio at 1,78%, which is within the regulatory threshold of 5%. The bank continues to be aggressive in its loan collection and recovery efforts whilst also underwriting a new book with caution.”
Net interest income surged 415% to $2,9 million by end of June 2018 from $563 287 in the comparable period last year.
Operating income nearly doubled to $12, 3 million from $6,4 million.
Total liabilities grew to $295 million from $271,3 million.
Metbank also reported significant growth to $166, 2 million as at June 30 2018 from $160,3 million as at December 31 2017, attributed to business development efforts.
Total assets grew to $357,1 million by end of June 2018 from $334,5 million in December 2017.
Metbank believes that a much stronger balance sheet, which will also set a solid base for sustainable profits, is emerging.
In line with this, the bank says it will continue to pursue its five-year recapitalisation plan in order to achieve the Reserve Bank of Zimbabwe’s minimum capital requirements of $100 million by 2020.