HomeBusiness DigestZim banks thrive amid economic crisis

Zim banks thrive amid economic crisis

Zimbabwe’s banking sector is thriving despite the tough operating environment, with profitability and balance sheet significantly sound in the full year ended December 31, 2016, financial results from reporting banks show.

The Source.

The analysis includes all banks except Steward Bank, which is yet to publish its financial results as it is a wholly-owned subsidiary of listed telecoms company, Econet Wireless, which is in its closed period in line with the Zimbabwe Stock Exchange-listing rules.

Econet has a February year-end and is due to report by May.

The review covers 12 commercial banks, four building societies and one savings bank.

Total income for the reporting banks increased by 5% to US$766,8 million for the year ended December 31, 2016 relative to US$729,9 million in the previous year on the back of a surge in non-interest income.

Net interest income from banks’ core business did, however, decline by 4% to US$381,4 million in the period from US$397 million recorded in the previous year from reporting banks.

Building societies increased their contribution to total income to 16,3% compared to 14,91% previously while commercial banks’ contribution to total income declined to 79% in 2016 from 80,6% in the same period previously.

Savings bank POSB also increased its contribution to 4, 64% relative to the previous 4,5%.

CBZ, CABS and Stanbic posted the highest total income of US$118,3 million, US$101,7 million and US$95,9 million respectively, which when combined, account for 41,21% of the total income recorded by reporting banks.

More profits

Total profit after tax for the reporting banks increased by 37% to US$165,9 million for the year ended 31 December 2016 relative to US$121 million in the previous year.

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