Presenting the group’s financial results Group Chief Executive Officer John Mushayavanhu said although the group was benefitting from its diversified business model, the subdued performance of the manufacturing business and stock-broking unit diluted the sterling performance of other subsidiaries.
“All the group business recorded positive performance expert the stock-broking subsidiary which registered a loss,” he said.
The results were achieved against a backdrop of an illiquid market characterized by high interest rates and weakening credit quality.
“The group recorded a total income of US$74,2 million, a 19 percent increase from last year, largely driven by net interest capacity and customer acquisitions,” he said.
The linkage of revenue to expenses was however less pronounced as revenues grew by 19 percent whilst overheads increased by 23 percent.
“The group will continue to channel significant resources to marketing, branding and information technology to achieve sustainable long term competitiveness,” Mushayavanhu said.
The group charged US$3,6 million for impairment loss on financial assets in line with the challenging operating environment, characterized by an illiquid market, short term credit facilities and prolonged cash conversion cycles.
“The group places emphases on adequate impairment charging and proper, prudent risk management to create value,” he said.
The group’s statement of financial position grew by 40 percent to US$392 million, a reflection of the increased success in deposits mobilization and other customer acquisitions.
Mushayavanhu said the group remains optimistic that the country will peaceful elections in 2013, which will result in macroeconomic stability and increased foreign direct investment, leading to improved liquidity.
“The group is well poised to exploit the new environment to grow shareholders value,” he said.
Post published in: Business