A 70% jump in interest income and good yields from Treasury Bill investment in Zimbabwe buoyed Bob Diamond’s ABC Holdings Ltd to a profit position in the half year to June (H117) from a loss of US$3,2 million in the same period last year (H116).
ABCH reported a profit of US$3,2m.
Diamond’s Atlas Mara acquired ABC Holdings in 2014.
But loans and advances decreased in the same period marginally from US$1,2 billion to US$1,1bn after the group took a decision to improve the quality of risk assets.
ABCH is holding on to a total US$275m worth of investment securities, up from US$131m in H116.
Zimbabwe investment securities came in at US$167m from US$50m in H116.
The group also increased its property investment in the same period to US$64 mn from only US$5m, up more than 1100%.
On property investments, its Zimbabwe operation had US$28m invested, from US$32m in the prior comparative period.
Other banks in Zimbabwe and fund managers have announced plans to invest in real assets.
“Net interest income of US$66,3m increased by 70% from US$38,9m in the comparative period, as the group focusses on reducing the cost of funds. Improved yields in Mozambique together with Treasury Bills from the Reserve Bank of Zimbabwe which yielded a good return improved annuity incomes notably year on year,” the group said in statement.
Non-funded income rose 2% to US$36,4m mn in H117 driven by strong forex trading performance. Loan impairments came in at US$7,4m from US$8,7m.
Its Zimbabwean operation reported net interest income of US$15m from US$10m, a 50% increase.
Zim loan impairments were significantly reduced at US$305 000 from US$1,4m after a significant portion of bad loans were sold to the Zimbabwe Asset Management company early this year.
Foreign exchange dealing income increased to US$2,4m from US$1,4m in H116, Fees and commission income dipped to US$3,9m from US$5,3m weighed down by a central bank order to lower transaction fees.
Total comprehensive income of African Banking Corporation Zimbabwe Ltd trading as BancABC stood at US$3,2m.
The bank was however holding to US$6,5m in cash with another US$71,7m held by the central bank.
ABC Zimbabwe cut back lending to individuals and households in the period to US$24,5m from US$38m.
Overall, Zim loans were reduced from US$278m in H116 to US$208m in H117.