Nyemba told Business Digest last week at an analysts briefing that management hoped to reverse its loss position and post a profit in this current financial year.
“All the subsidiaries are making money. The bank should be profitable by end of year,” said Nyemba.
He said the bank’s focus would be on efficiently widening the product range for retail customers as well as enhancing the distribution and service channels through the use of its strong branch network.
He added that the bank would focus on harnessing business of cash -rich clients such as supermarkets.
In the full year to December 31 2011, the group reported an operating loss of US$1,4 million after operational costs of US$10,7 million wiped out income which totaled US$9,7 million. Management attributed the loss to branch refurbishment and roll-out by the bank.
As part of the branch roll-out drive, the bank established nine branches and four agencies in economically active centres in the country.
The bank also increased its product offering to include, Western Union, Yuan Trade, Trust Star, a children’s savings account, BancAssurance in partnership with insurance companies, among others.
Trust Bank’s net interest income totalled US$2,5 million since the bank was very aggressive during the period ,with loans and advances increasing to US$22,5 million from US$1,4 million in the prior year when it became operational.
Management said that a total US$18,6 million of the loans went to small- to- medium enterprises while the exposure to individuals totalled US$3,8 million. The bulk of the loans were backed by collateral, with 85% of the advances categorized in the top two grades of the internal rating system.
Fees and commission income totalled US$2,7 million, mainly attributable to an increase in the customer base ,with at least 20,000 accounts being opened during the year. The group however plans to limit the branch roll-out in the current year. Customer deposits increased to US$23,7 million with US$12,6 million being demand deposits while US$11,1 million are time deposits.
However, management said the deposits growth and loans had slowed down due to the Renaissance Merchant Bank debacle. Market- wide liquidity challenges at the end of the year also affected the bank’s ability to increase deposits.
The bank’s provision for bad loans and advances for the period amounted to US$251 512 with a loan- to -deposit ratio of 94,93%.
Trustfin Insurance Brokers posted a profit of US$3 698 but Trust Agriculture incurred a consolidated loss of US$139,242 for the year.
Trust Properties, the real estate, property management, development and valuation company, recorded a US$39 570 loss for the year but management said the subsidiary was now profitable post reporting date.
Management said the Trust Bank engaged Trust Holdings to further inject capital into the entity to enhance lending capacity, resulting in the injection of additional capital amounting to US$10,2 million post reporting date. The bank is now capitalised at US$23,9 million.
Going forward, the group is currently in discussions with potential investors to inject additional capital into Trust Bank, MD Nyevero Hlupo said.
The group plans to raise up to US$20 million by the end of June.