PREMIER Banking Corporation, which now has a merchant banking licence granted by the central bank, has completed restructuring its operations in line with its new mandate.
Previously the group operated as a discount house but applied for a merchant banking licence to broaden its operations.
Total deposits held by the banking group closed the half-year at $257,8 billion, surpassing its set target of $125 billion.
Chief executive officer Exodus Makumbe attributed the fine performance to the increase in investor confidence in the financial sector.
Makumbe said measures that had been implemented by the central bank to restore sanity in the turbulent sector were bearing fruit.
“We have assumed moderate and stable risk in our management policies largely ensuring that adequate liquidity is maintained for business continuity,” Makumbe said.
He said the banking group will continue to develop and implement structures and policies that will strengthen its operations in the long-term.
“Like all financial companies we have to implement policies that guarantee returns to our investors and with this in mind we will continue implementing policies that will go a long way in meeting the targets of the group,” said Makumbe.
The group has also revised its profit before tax target for the full year from $33 billion to $95 billion, a move necessitated by the growth in its depositor base.
Premier achieved an interest income for the half year of $86,2 billion, a marked increase of 226% compared to the previous year’s figure of $26,4 billion.
“We have recorded a marked increase in our balance sheet and this has had a compound effect on our interest income for the first six months of the year, Makumbe said.
The group’s net interest income closed at $21,4 billion for the period under review against $1,2 billion in 2004.
“Overall, we are pleased with the group’s performance for the first six months of the year and we are confident the group will be able to surpass its set targets for the second half of the year, Makumbe said.