Investrust Bank has recorded a loss after tax of K39.74 million for the financial half-year ended 30 June 2019, according to a statement from the bank.
“The Bank recorded a loss after tax of K39.74 million for the half-year ended 30 June 2019 (H1 – 2018: Loss of K33.01 million)”, read a statement issued by the Bank’s Company Secretary Brian Msidi on behalf of the Board. “Total Net interest income decreased from K20.9 million in H1- 2018 to K18.44 million in H1- 2019”.
The bank’s lackluster profit & loss performance has seen it suffer a 2% reduction in interest income coupled with a 7% increase in interest expense which led to a 12% slump in Net interest income. Its P&L has also seen a 12% reduction in other operating income signaling a very tough competitive year for the bank.
With a P&L that is fraught with diminishing value, the balance sheet has seen a 16% reduction in total assets. However, the bank increased its investment securities despite a 24% reduction in loans and advances during the period under review.
Unfortunately for the management team, shareholder value continues to diminish as the bank is now faced with a 128% decrease in shareholders’ equity, according to their half-year report.
On the upside though, the bank has been able to reduce its administration costs. “Total operating and other administration costs decreased by 2% during H1 – 2019 compared H1 – 2018”, signaled austerity at the Bank. Furthermore, impairment provisions are also reducing. “Impairment provisions on loans and advances were recorded at K3.5 million at end of June 2019 compared to K3.9 million”.
Despite all the bank’s woes, it’s capital position remained strong as of 30 June 2019. “The bank closed with a regulatory capital of K34.54 million against a minimum regulatory requirement of K104 million.” Furthermore, the bank’s signal largest shareholder showed its commitment to capitalizing the bank through an endowment. “During the half-year ending 30 June 2019, the Bank’s largest shareholder, ZCCM-IH, injected in cash of K200 million as part of the recapitalization program and discussions are underway to further recapitalize the Bank for a further K86 million under a signed Claw-back share subscription agreement.”
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