Business / Companies
Trust Holdings posts a tepid set of Interim results
29 Aug 2011 at 07:43hrs | Views
Trust Holdings posted a tepid set of interims showing an adjusted loss before tax of $2.9 million. Adjusted cost to income ratio deteriorated to 132% impacted by the re-opening of the banking unit. Attributable earnings of $0.2m were enhanced by a $3 million recycling on realized gains from disposal of quoted investments channeled towards injection of liquidity into the banking operation.
The balance sheet grew to $44.6 million on the growth in advances and deposits. Property, motor vehicles and equipment contributed 25% to the total balance sheet. The loan to deposit ratio was high at 99%.
In a trading not, Addmore Chakurira of Imara Stockbrokers said, "In our view, the landscape in the banking sector has significantly changed and it might prove a challenge for the banking unit to attract and retain clients given the diminished confidence levels. We are also wary about the quality of the advances book with the bank having being overly aggressive. The short to medium term growth prospects for the group remain very uncertain. For the group to attain its envisaged growth additional capital is required.
In a trading not, Addmore Chakurira of Imara Stockbrokers said, "In our view, the landscape in the banking sector has significantly changed and it might prove a challenge for the banking unit to attract and retain clients given the diminished confidence levels. We are also wary about the quality of the advances book with the bank having being overly aggressive. The short to medium term growth prospects for the group remain very uncertain. For the group to attain its envisaged growth additional capital is required.
Source - Imara Stockbrokers
