Mr Sam Malaba, AgriBank Chief Executive Officer, announced the bank’s financial results for the second quarter 2017, reporting net income growth by 14,2 percent to $13,03 million from $11,42 million previously, while non-interest income grew 4 percent to $2,2 million.
The State-owned Agricultural Development bank of Zimbabwe (Agribank) reported a profit of $2,18 million in the six months to June from $2,16 million recorded in the comparable period last year on increased income. AgriBank been reporting good results since December 2016 when they recorded a profit of $4,8 million, from a loss position of $6,3m in 2015 on the back of a growth of net interest income.
The bank targets to achieve a single digit NPL ratio by December 2017 against regulatory target of 5 percent,” Mr Sam Malaba said.
In the period under review, Agribank Deposits increased by 120 percent to $105,33 million mainly due to an increase in demand and savings accounts. Total bank assets grew 5 percent to $214,99 million on increased deposits.
The bank’s core capital grew to $52,48 million from $51,08 million previously, and the bank had treasury bills (TBs) worth $76,6 million, representing 36 percent of the total assets. Of the total amount of TBs held by the bank, $40 million relates to capitalization of the bank.
Global fintech adoption has risen on average from 16% in 2015 to 33% in 2017. Financial institutions, in general, and AgriBank has been mulling to introduce Agency banking. Across the board, there is a push towards redefining business models to develop agility and increase growth. Eventually, it’s the changing customer perceptions and behavior which impacts demand for financial services.
Several banks have resorted to playing catch up not only with financial technology solution providers but also existing business models. Banks are constantly challenging existing framework and business models to become more relevant to their customers, and access long-term and sustained revenue pools.