MBCA grows balance sheet
MBCA Bank Limited, a unit of South Africa’s Nedbank Group, ended the full year to December 2015 on a positive note, with impressive growth in key balance sheet items.
The bank’s balance sheet size grew by 29,1 percent during the review period to US$243,9 million, from US$188,9 million reported in prior year.
This growth, the bank’s managing director, Charity Jinya explained, was “due to growth in the loan book and Treasury Bills (TBs) which grew by 11 percent and 32 percent respectively”.
The bulk of the TBs were debt securities backed by the Cairo headquartered trade finance institution, African Export- Import Bank (Afreximbank).
Loans and advances to customers constituted 42 percent of the total balance sheet, compared to 49 percent in 2014 while cash and cash equivalents increased to 46 percent from 38 percent in 2014.
Furthermore, the bank recorded growth in cash and cash equivalents, making it adequately resourced to meet the growing requirements for cash by customers at year end.
Besides, the bank also grew customer deposits by 39 percent to US$193,22 million, from US$138,9 million in line with the asset growth of the bank.
The increase in deposits could reflect the bank’s customers continued and growing confidence in the brand.
On the income side, the bank’s profit after tax grew by eight percent from US$5,380 million in 2014 to US$5,835 million last year.
The bank said this was largely from net interest income which increased by 10 percent to US$14,753 million. This was a result of the growth in the loan book which increased by 11 percent.
However, non-interest revenue showed decline of seven percent to US$12,792 million, primarily due to “reduced transactional business from companies and individuals who were adversely impacted by low economic activities”.
MBCA Bank is one of the foreign-owned banks operating in the country.
Others include British-owned Barclays Bank of Zimbabwe and Standard Chartered Bank of Zimbabwe, Stanbic Bank, a unit of South Africa’s Standard Bank group and pan African banks, Ecobank and BancABC.
The sector has recently come under pressure to comply with the country’s controversial indigenisation law.
MBCA chairman, Willard Zireva, said the bank was in the process of implementing an approved indigenisation plan.
Nedbank, South Africa’s fourth largest bank by market capitalisation and customer numbers, holds a controlling 74 percent stake in MBCA Bank.
Banca de Credito Finanziaio of Italy and Rothschild & Sons of the United Kingdom are the other two offshore partners who own 10,5 and 3,26 percent shareholding in the financial services firm respectively.
Old Mutual Zimbabwe Limited owns 18,30 percent while employees have a stake through a Share Trust controlling 0,66 percent.
MBCA Bank is Zimbabwe’s first-ever merchant bank, which was incorporated in 1956 as the Merchant Bank of Central Africa.It converted to a fully-fledged commercial bank and adopted the name MBCA Bank in 2004.
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