MBCA after tax profit up 344%

Gamma Mudarikiri
MBCA Bank’s after tax profit grew 344% in the half year to 30 June 2012, driven by an increase in operating income and effective cost containment measures.
Profit in the period grew to US$2,077 million compared to US$0,468 million in the same period last year, according to a statement on the bank’s financial results released this week.

The increase in profit was buoyed by a 25% growth in operating income, which surged to US$10,7 million in the period.

Growth in profit was also underpinned by a 50% increase in interest income, which grew to US$5,2 million, spurred by a 63% increase in the loan book to US$98, 6 million.

The loan-to-deposit ratio improved to 63% as of June, compared to 54% in December 2011.

The bank  said  it  would continue  to ensure  that balance was exercised between growing  the  loan  book   and  maintaining  a  buffer for  depositors’  requirements,  given the  absence of  an  effective interbank market  and  lender  of  last resort.

Total net loans and advances totalled US$98,6 million in the period,  while deposits  grew  by 4%  to US$156,3 million.

Total equity grew 11% in the period to US$21,7 million, compared  to US$19,7 million recorded in  December  2011.

The bank’s cost-to-income ratio dropped marginally to 74%, compared to 92% recorded in the same period last year.

Operating costs decreased marginally to US$7,913 million, compared to US$7,939 million incurred in the prior year.

Non-interest  income  grew  by 21% to US$156 million, compared  to  US$149,8 million last year, in line with the  growth in transactional volumes and agency  commission  fees.

Staff  costs  dropped 3% to  US$4,3  million following a staff rationalisation  exercise the company concluded in the fourth quarter of 2011.

Loans and advances amounted to US$98,6 million, representing 51% of total assets.

“The  quality of assets  continues  to improve  as  evidenced  by the  loan  impairment ratio of 1,67% compared  to 2,92% during  the  corresponding   period  the  previous  year,” the  bank said.

The balance sheet grew by 6,3% to US$192 million compared to US$180 million recorded in the prior year.

The  bank said it was  optimistic about  the  future  despite  political and economic challenges.