THE financial sector’s interim reporting season might be coming to an end, but for some commercial banks like Kingdom the celebrations of the phenom
enal growth of the bank are likely to last until the financial year end results in December. Kingdom — whose share price has recorded the biggest gain increasing by 99 910% since January — made the biggest profit after tax in inflation-adjusted terms of $170 billion for the period ending June 30 from $11 billion achieved during the same period last year.
The bank’s net interest margins rose by 92,8% to 54% from 28%, while its balance sheet increased by 47% to $2,5 trillion from $1,7 trillion.
The bank said the results indicated solid growth based on a strong capital base buttressed by well-managed portfolios.
“As a diversified group and leveraging on our key competencies in treasury management and equities dealing, income distribution for the half year was mainly concentrated in interest income and dealing profits.
“Net interest income contributed 33% of group income compared to 59% of the period under review,” said Kingdom Bank chairperson, Susan Bango.
An interim dividend of $208 per share was declared.
Barclays Bank was the second best performing bank in inflation adjusted results recording a profit of $92,3 billion during the period under review compared to a loss of $227 billion.
This represent inflation adjusted basic earnings per share of $43,05 up from a loss per share of $1 139,29 posted during the same period last year.
CBZ continued to make its presence felt in the banking sector posting a profit after tax of $77,2 billion compared to $96,1 billion last year during the same period.
The bank’s balance sheet grew by 109% to $5 trillion and was largely driven by advanced to customers revaluation of properties and deposits. The group declared an interim dividend of $60 per share.
The building society, which was acquired by CBZ effective January 1, posted $207,1 billion and the balance and the balance sheet stood at $1,3 trillion.
MBCA Bank Ltd recorded a profit after tax of $61,5 billion for the interim period ended June 31, 2007.
Net interest income rose to $67,2 billion as compared to $3,6 billion posted during the same period last year.
Profit before tax grew by 1 765% to $95 9 billion compared to $5,1 billion for the previous year.
Fixed assets increased to $44,2 billion due to the additional assets that were acquired during this period. Cash and bank balances posted for the period were $163,9 billion.
Total assets grew from $81,9 billion.
ZB Bank achieved a profit of $35 billion compared to a profit of $275,7 billion. The balance sheet grew by 4% from $2,9 trillion to $3 trillion representing real growth after adjustment for inflation.
The bank operated above the minimum capital adequacy ratio of 10% during the period under review.
NMB Bank recorded a profit after tax of $24,7 billion compared to a loss of $40,2 billion during the same period last year.
The group’s balance sheet decreased by 22% to $948 429 million from $1,2 billion at December 31.
“The group’s results for the six months ended June 30 reflect the impact of the liquidity conditions over the period under review.”
“Initiatives for closing the gap created by the foreign currency fraud many results in a strategic reconfiguration of the group during the second period,” said NMB chairman Gibson Mandishona.
Metropolitan bank brewed the biggest shocker by achieving a profit after tax of $21,2 billion compared to $5 billion recorded during the same period last year.
The bank attributed the success to cost containment strategy adopted by management during the period under review.
Cost to income ratio improved significantly from 36% in 2006 to 26% this year. Total assets rose by $2 415% to reach $280,9 billion.
During the period under review big banks suffered losses inflation adjusted with FBC Bank recording the least loss among the loss making banks of $16,1 billion compared to $68,9 achieved during the same period last year.
The bank’s chairman Herbert Nkala said an interim dividend of $284 was declared adding that the improvement of macroeconomic environment hinged upon fiscal and monetary policy convergence.
“The pre-election period to presidential and parliamentary election for March and the forthcoming agricultural season will influence the general outlook of the economy,” said Nkala.
Standard Chartered Bank realised a loss of $41,8 billion, that is higher compared to the results achieved in 2006 of $192 billion.
This reflects the negative impact of the hyperinflationary environment to entities that are well capitalised and liquid.
The monetary loss adjusted penalised banks for holding excess monetary assets over liabilities and this negates prudential requirements.
Agribank realised a loss of $53,5 billion compared to a profit of $140,6 billion.
The balance sheet grew from $88,8 billion in December 2006 to $871,9 billion in June 2007.
Loans and advances grew by 399%.
The country’s youngest bank, ZABG made a loss of $77 billion in inflation-adjusted terms compared to a loss of $35,3 billion the previous year.
Total assets stood at $936,9 billion as at June 30 compared to $847,9 billion as at December 31 2006.
“The group will continue t identify opportunities to diversify income streams while keeping costs under tight control without compromising service delivery levels,” said the bank’s chairman Cornelius Sanyanga.
Stanbic Bank which was the best performing bank for the financial year ending December 31 recorded a loss of $227 billion against another loss of $191 billion for the half year ended June 30.
The bank said despite the loss in inflation adjusted terms, there was a significant improvements in respect of net interest income as a results of higher loans and advances, which increased by 2 972% from a December balance sheet of $53 billion to $628 billion as at June 30 this year.
There was also a reduction in the utilization of expensive overnight accommodation.
Non interest income lagged behind inflation and operating costs increased due to rising prices and inflationary pressures.