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Oliver Kazunga, Senior Business Reporter
AGRIBANK continues to post profits for the second time running since 2009 recording $2.18 million for the half year ended June 30, 2017.

The state-owned financial institution posted its first ever profit after tax since 2009 of $2.16 million for the year ended December 31, 2016.

In a financial statement for the first six months of the year, Agribank chairman Mr Sij Biyam said the continued positive performance was due to continued benefits from the recapitalitalisation of the institution by the shareholder in 2015 and last year.

He said recapitalisation of the bank enabled its re-organisation.

“The performance was due to growth in business driven by Information Communication Technology delivery channels and electronic banking products as well as enhanced liquidity. Further, the bank is also realising positive spillovers from transferring Non-Performing Loans (NPLs) to the Zimbabwe Asset Management Company (Zamco) in 2016,” Mr Biyam said.

During the period under review, the financial institution’s net interest income stood at $13.3 million up from $11.42 million recorded in the first half of last year.

The gain, Mr Biyam said, was despite the significant decline in the loan book due to transfer of NPLs to Zamco, indicative of growth in quality lending an enhanced credit management in the bank.

“Commission income grew by four percent from $2.2 million to $2.3 million in the first half of 2017,” he said.

During the period ended December 31, 2016, Agribank made dividend payment to Government of $914 000.

The shareholder ploughed back the dividend payment as part of further recapitalisation of the bank.

Last year, Mr Biyam said the solid performance by Agribank marked an indication of the solid turnaround for the institution.

He said this was anchored on the implementation of a range of turnaround initiatives following the capitalisation of the bank in 2015.

Between May 2015 and last year, the Government recapitalised Agribank to the tune of $51.08 million following shareholder capital injection of $10 million and thus the institution’s capital adequacy ratio closed the year at 36 percent compared to the regulatory minimum of 12 percent.

As of June 30, 2017, the financial institution’s capitalisation stood at $52.5 million.

It is envisaged that Agribank will continue deepening the pursuit of the mandate for agriculture financing and development. — @okazunga.