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.