RBZ records $500 million profit

The Reserve Bank of Zimbabwe turnaround strategy is yielding positive results as evidenced by a US$500 million profit recorded by the bank for the year ending December 31, 2015.

RBZ Governor Dr John Mangudya says in the latest central bank 2015 annual report, the apex bank has implemented prudent financial management policies that have seen it recording a US$505 million profit compared to US$191 million profit registered in 2014.

The central bank has also written off US$700 million in government bad debts during the financial year under review, according to the annual report seen by the ZBC News this Monday.

Assets value for the apex bank also increased to US$1,9 billion in 2015 compared to US$1,1 billion in 2014.

Dr Mangudya says key highlights of the 2015 financial year included the deal signed with the Afreximbank for the provision of a facility towards the revival of an interbank trading system.

Furthermore, the central bank also signed a facility with regional financial institution, the PTA Bank to re-finance productive sectors of the economy.

Volumes of non-performing loans declined from 15.91 percent as of December 2014 to an average of 10.82 percent in 2015.

According to the report, the country's financial or banking industry is strong, safe and profitable for investments.

The government which is the key shareholder in RBZ has mandated the central bank's board to implement a turnaround strategy aimed at increasing profitability.