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Business Reporter

African Century Limited (ACL) says it raised more than US$2 million from various fund raising initiatives during the six months period to June 30, 2022 as part of the banks’ efforts to strengthen the balance sheet to support lending.

ACL is a Zimbabwean banking institution that caters for the financial of corporates, small and medium enterprises and individuals, offering services such as international banking, treasury, leasing and other financial services and is a forerunner in equipment leasing.

The bank has been engaging foreign lenders to establish credit lines to support the retooling of industry following the negative impact caused by the Covid-19 pandemic.

Board chairman Mr Victor Gapare in a statement of the financials said the bank’s revenue the bank’s loan book grew by 14 percent in the half year period, largely financed by redeployment of repayments as customer deposits declined by 40 percent due after significant term deposits matured.

He said that the total assets were $42 billion at the end of the period, a 7 percent decrease from $45 billion in December 2021, “mainly as a result of a decline in cash and cash equivalents holding of 52 percent”.

“This was compensated by a 49 percent growth in investment property. 

The loan book grew by 14 percent mainly driven by redeployment of repayments to underwrite high yielding loans as customer deposits decreased by 40 percent due to maturities of term deposits,” he said.

In terms of financial performance, the bank’s total and operating income increased by nearly 400 percent during the period under review to close at $17 billion and $1 billion, respectively.

“The major driver for this performance emanated from non-interest income which was 81 percent of total income and the contribution was an increase of 11 percent from the previous year,” he said.

Mr Gapare said that net interest margin took a 4 percent knock to 73 percent as a result of the increase in the medium-term accommodation facility rate from 40 percent in January to close at 100 percent in June 2022.

He said that following the increase by the central bank of its bank policy rate, African Century anticipated this and other measures to successfully arrest runaway inflation and usher the much-anticipated currency stability.

ACL was set up in 2010 as a leasing company.

The business has raised several third-party credit lines from Afreximbank, Dutch entrepreneurial development bank FMO, Soros Economic Development Fund and others.

The company has grown to be a lease finance company for vehicles and machinery with clients from both the private and public sectors.