Business / Companies
Obert Mpofu's Allied Bank needs to get investment
31 Mar 2014 at 15:54hrs | Views
The successful courting of an investor by Allied Bank Limited will have a significant bearing on its operations and continuation as a going concern.
Allied Bank is among seven banks being monitored by the central bank due to liquidity challenges and was yet to comply with the December 2013 regulatory minimum capital requirements of $25 million.
The bank, which has been engaged in negotiations with a Mauritian based company, needs to raise funds for recapitalisation and also grow its balance sheet. Chief executive Stephen Gwasira said the bank recorded an operational loss of $3,1 million in the review period compared to a $4,1 million loss in 2012.
This was due to an increase in operating income from $3,9 million in the prior period to $4,3 million in 2013.
The bank's assets stood at $34,8 million during the period under review.
This was a 15 percent decline from $40,8 million in the prior period due to subdued business volumes owing to the bank's diminished capacity to lend.
Interest income of $701 571 was gobbled up by expenses totaling $987 416 for the period under review. Impairment losses on loans and advances stood at $795 7354 from $253 971 in the prior year.
Going forward, Gwasira said the bank will seek to increase the balance sheet capacity in order to underwrite quality business.
Allied Bank is among seven banks being monitored by the central bank due to liquidity challenges and was yet to comply with the December 2013 regulatory minimum capital requirements of $25 million.
The bank, which has been engaged in negotiations with a Mauritian based company, needs to raise funds for recapitalisation and also grow its balance sheet. Chief executive Stephen Gwasira said the bank recorded an operational loss of $3,1 million in the review period compared to a $4,1 million loss in 2012.
This was due to an increase in operating income from $3,9 million in the prior period to $4,3 million in 2013.
This was a 15 percent decline from $40,8 million in the prior period due to subdued business volumes owing to the bank's diminished capacity to lend.
Interest income of $701 571 was gobbled up by expenses totaling $987 416 for the period under review. Impairment losses on loans and advances stood at $795 7354 from $253 971 in the prior year.
Going forward, Gwasira said the bank will seek to increase the balance sheet capacity in order to underwrite quality business.
Source - businessdaily.co.zw
