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Alvord Mabena

African Banking Corporation of Zimbabwe Ltd (BancABC) posted a loss after tax of $162,000 for the six month period to June 30, 2015 from a $6,9 million profit in the prior comparable period.

In a statement accompanying the results, chairman Alvord Mabena attributed the depressed financial performance to “a combination of weak economic activity in leading sectors and reduced lending with the focus on quality.”

The bank’s net interest income declined 33 percent to $18,9 million compared to $25,1 million from the comparable period last year.

Although fee and commission income also dipped during the period under review, Mabena said the bank is working to capture growth opportunities offered through technology.

Operating expenses were three percent lower than during the first half of 2014 and 19 percent below budget due to cost-cutting measures implemented during the period under review.

Management expects reductions in costs to be maintained into the second half, as well as into next year.

Loan impairment charges of $9,7 million were recorded during the half.

The bank reported a capital adequacy ratio of 16 percent, which is above the regulatory minimum of 12 percent.

Going forward, the chairman said the bank will scale up its SME loan portfolio, as well as increase in-lending for financial inclusion products.

It also plans to invest in information technology upgrades to quicken implementation of its new financial technology and mobile banking initiatives.

Meanwhile, the company has announced that the Reserve Bank of Zimbabwe has approved the -rebranding of its logo to incorporate the name of its parent company.

“The Reserve Bank of Zimbabwe has approved the amendment of the ABC Holdings Ltd logo from “BancABC” to “BancABC part of atlasmara” with effect from August 26, 2015.

“The change in the logo follows acquisition of significant interest by Atlas Mara in BancABC in July 2014 and the need to reflect that change in ownership,” said the company in a statement.

Atlas Mara itself recently announced a $4,1 million after tax profit in the half-year to June compared to a loss of $3,2 million reported for the prior year period.—Bh24.