Metbank has thrown its weight behind the hiking of minimum capital thresholds to $100 million for commercial banks by the Reserve Bank of Zimbabwe (RBZ) saying this will stabilise the financial sector and safeguard depositor’s funds.
In a statement accompanying its unaudited financial statement for the half-year ended June 30 2012, Metbank chairman Wilson Manase said the bank’s total assets rose by 44% to reach $184 million from $128 million.
Shareholder equity as at June 30 stood at $44,5 million, representing 24% of half-year end assets. Liquid assets amounted to $43,8 million.
Operation expenditure stood at $7,6 million. The bank’s pre-tax profit was up to $1,9 million from $1,8 million over the comparative period. The central bank raised minimum capital requirements for commercial banks to $100 million from $12,5 million in a phased approach expected to be completed by 2015.
Banking institutions are expected to raise $25 million in capital by December 31. Banks are also expected to comply with 50% of the prescribed minimum capital requirements for the applicable class of banking business by June 30 2013.
“I am happy to report that the shareholders of the bank will comply with the new requirements before the stipulated deadline,” Manase said.
“For our part we have been advocating for higher capital thresholds and are indeed encouraged by measures taken by the RBZ to stabilise the banking sector and ensure that depositors’ funds are safeguarded.”
During the period under review, Metbank secured $22 million in lines of credit from PTA and Afreximbanks for on-lending to various sectors of the economy.
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“Qualifying companies, which include SME’s, have found the terms of these lines of credit appropriate to finance their capital expenditure and working capital requirements given that loan tenures range from six months to three years,” Manase said.
Non-funded income spiked 50,4% to $4,99 million driven by new accounts, high transaction values due to branch expansion initiatives and increased usage of the bank’s technology. Six new branches were opened in Masvingo, Manicaland, Midlands and Matabeleland provinces.
In the six months to June, loans and advances to customer grew to $84,9 million from 55,8 million in the six months to December 2011.
