BARCLAYS Bank registered a growth in profit

BARCLAYS Bank Zimbabwe registered a 211% growth in Profit before tax from a loss position of $1,9 million to a positive US$2,1 million for the year ending December 31 2011 supported by a decline in the cost to income ratio from 106% to 95% for the current year.

The profit prompted Barclays to target a minimum of 14% growth in total income to be driven by broadening the group’s product range and growing a quality loan book

The group managed to turn to profitability recording a profit after tax of US$1,4million from a loss position of US$1,3 million in the prior year.

On the statement of financial position deposits increased by 18% to US$213,7 million from US$181,2 million following the overall growth in the depositor base. A total of 67% of the deposits were corporate deposits whilst the remainder was retail deposits. Loans and advances grew by 36% to US$58,5 million driven by growth in both commercial and retail lending.

Barclays maintained its prudential lending limit at all times. Barclays had sufficient liquidity as represented by the 69% liquidity ratio albeit lower than the 72% recorded last year and this saw the group meeting all its obligations to depositors at all times.

Said Barclays Bank Managing Director George Guvamatanga during the banks analyst briefing on Tuesday of the growth target: “We will focus on leveraging on group synergies with Barclays Capital and ABSA Capital mainly by introducing new products primarily on e-channels”.

“We will be launching mobile banking during the first half of the year as the bank continues to pursue initiatives to tap into more Barclays Group product offering for the benefit of our customers.” said Guvamatanga.

He said that out of the 76 installed ATMs, current demand and transactional activity has seen only 43 being active and that the remaining ATMs will be reactivated as activity improves. For the year ending December 2011, three branches were closed whilst their operations were merged into other branches.

Operating costs rose by 11% to US$37,6 million from prior years’ US$34 million mainly driven by industry driven salary adjustments and general inflation taking the cost to income ratio for the bank to 95%.

Post published in: Business

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