Tetrad bank records profit

TETRAD Holdings Limited’s profit after tax rose 1 896% to US$5,4 million for the financial year ending March 31 2012 compared to a loss of US$306 356 during the same period last year powered by strong performances by the properties division, the bank and the holding companies investment.

The group said it was poised for future growth as it continues “to strategically position” itself within the financial service sector and other key sectors of the economy.

During the period under review, the bank made a profit after tax of US$724 122 compared to a loss of US$564 777 achieved in the previous year.

The bank’s net interest income increased by 97% from US$1,2 million recorded in the prior year to US$2,3 million in the current year due to an increase in deposits by 30% and improved margins on lending.

In a statement accompanying the group’s financial result, Tetrad chairperson Miccah Moyo said the bank’s total revenue increased by 132% to US$4,2 million compared to US$1,8 million achieved during the same period last year.

“Total costs at US$3,5 million grew by 37% from US$2,5 million recorded in the previous half year. The bank managed to grow its revenue while keeping costs under control positioning itself to grow further by end of the year and consolidate its position as a key player in the financial services sector,” said Moyo.

The bank’s total assets stood at US$79,5 million up 22% from last year’s figure of US$65 million. The bank’s capital was at US$13,4 million up from last year’s figure of US$13 million.

“The bank was adequately capitalized during the whole period under review,” said Moyo. The banking sector has continued to grow with deposits growing to US$3,5 billion as at February 3 2012 from US$3 billion in November 2011.

The group’s asset management company – TFS Management Company (Private) Limited, however posted a loss after tax of US$269 139 compared to a profit of US$98 238 achieved during the same period last year.

“The poor performance of the Zimbabwe stock exchange and the difficult operating environment during the period under review impacted negatively on the performance of the asset management unit. Management is very confident that the unit will return to profitability and the loss will be reversed by year end,” Moyo said.

Funds under management amounted to US$40 million up 8% from US$37 million recorded last year. “The property company continues to perform above expectations achieving high level yields and occupancy ratios,” said Moyo.

Tetrad’s insurance arm –Tetrad Hail Insurance achieved a growth in gross premium of 4% over the same period last year, however profitability was affected by the high claims.

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