HomeBusiness DigestMBCA achieves US$13,4m operating income

MBCA achieves US$13,4m operating income

SOUTH Africa’s Nedbank must be glad that it raised its shareholding in MBCA Bank Ltd from 50% to 74% last year after the bank achieved a total operating income of US$13,4 million for the financial year ending December 31 2009.

During the period under review, MBCA chairman Willard Zireva said the bank’s shareholders injected fresh Tier 1 capital amounting to US$9,2 million through a rights issue undertaken in September last year.
“The major shareholders have made an additional Tier 1 capital to ensure that the bank is compliant with the regulatory minimum capital requirements,” he said.
The bank however incurred an operating loss if US$640 327 mainly due to the impairment on fixed assets of US$956 2 21, a fair value loss on available for sale investment of US$587 350 and impairment loss on loans and advances of US$2 million. Attributable losses were US$131 609.
Zireva said market interest rates have largely been influenced by the excess of liquidity in the domestic market.
“Borrowing interest rates were ranging from as low as 5% up to 50% per annum for the period under review due to lack of defined term structure of interest rates in the period after adoption of the multiple currencies,” he said.
Nedbank is considering disposing MBCA’s asset management firm, a move which market watchers said was meant to increase the group’s earnings.
In a statement to businessdigest this month, MBCA said: “Our aim is to be the leading lender in Zimbabwe, specialising in corporate and business banking, trade finance, private clients and advisory service.
“This repositioning is to ensure we remain profitable in the tough operating environment following the capital raising programme which demonstrates Nedbank group’s confidence in MBCA Bank”.  –– Staff Writer.

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