AFRASIA Kingdom Zimbabwe Ltd hopes to improve its mix of cost effective core deposits and optimising cost efficiencies, the group said.
The group said it would aim to provide the state of the art financial services through leveraging technology.
The group’s balance sheet grew by 18% to US$186 million in the half year ended June 30, largely helped by a lowering cost in funding of the loan book.
Afrasia Kingdom said it would further consolidate its financial position, adding it was looking at launching an upgraded core banking system.
The group’s said the improvement of its financial position by 18% reflected a modest increase in demand deposits in line with its strategy of lowering funding of the loan book.
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onet profit grew to US$1,3 million, increasing from US$782 031 recorded in the full year ended 31 December 2011.
In a statement accompanying the group’s financial results, chairperson Sibusisiwe Bango said shareholders approved plans to raise US$200 million.
She said part of the funds would go towards meeting the Reserve Bank of Zimbabwe (RBZ)’s new capital requirements for banks.
The RBZ last week raised minimum thresholds to US$100 million, from US$12,5 million for commercial banks and US$10 million for merchant banks.
Bango said Afrasia would inject fresh capital into local operations, having earlier on provided equity funding for Kingdom Bank to meet the previous US$12,5 million minimum capital levels.
She said the money would be used to recapitalise the group’s subsidiaries, adding this would increase confidence levels, especially in the banking unit, as evidenced by a rise in retail and corporate deposits to US$125,9 million. Bango said subsequent to the capitalisation of Kingdom Bank, liquidity pressures eased markedly and effectively put an end to delayed Realtime gross settlements.
She said the bank managed its liquidity risk exposures proactively within prudent risk parameters and posted a modest US$572 136 profit, anchored by strong fee and commission income.
Kingdom Asset Management’s performance improved and the unit reported a profit after tax of US$32 751, while funds under management grew by 20% to US$41 million.
“The group is targeting further improvement across all metrics, which should place its subsidiaries in a top quartile industry positioning from a funding and liquidity position,” Bango said.