CABS records $20m surplus

26 Aug, 2016 - 00:08 0 Views
CABS records $20m surplus

The Herald

The Central Africa Building Society, a subsidiary of the Old Mutual Group, recorded a net surplus of $20,75 million for the half-year to June 2016, up from $10,63 million realised in the comparative period in 2015. Society chairman Dr Leonard Tsumba said the net surplus was attributable to a decrease in impairments through the income statement, from -$9,92 million to $1.6 million, as there was a limited growth in the loan group.Dr Tsumba said some of the loans previously provided for were settled in the period under review.

Net interest income declined by 4 percent compared to the same period in 2015, while fee and commission income increased by 5,8 percent.

Comparatively, operating expenses increased by 10,7 percent, thus increasing the Society’s cost to income ratio from 54,3 percent in 2015, to 60,3 percent in 2016.

Dr Tsumba said “Total assets increased by 7,3 percent, from $923 million in June 2015 to $991 million in June this year while deposits grew by 6,7 percent during the same comparative period. The Society’s total loans and advances increased by 7.6 percent from $496 million, as at June 30, 2015, to $533 million, as at June 30, 2016.”

The Society’s prudential liquidity ratio stood at 36,5 percent, against the minimum regulatory ratio of 30 percent.

In future prospects Dr Tsumba said together with Old Mutual the Society believed extended period of economic decline in the country would come to an end and therefore had adopted a long term view, to follow opportunities that were not apparent in the short term.

“As a result, the Society continues to invest in its customers by pursuing initiatives to enhance its role in both housing finance and banking.

“As these initiatives are progressively realised, the Society, as part of a strong and integrated financial service group, will remain a positive and progressive force in the country’s financial services sector and in the economy as a whole,” added Dr Tsumba.

The Central Africa Building Society, a subsidiary of the Old Mutual Group, recorded a net surplus of $20,75 million for the half year to June 2016, up from $10,63 million realised in the comparative period in 2015.

Society chairman Dr Leonard Tsumba said the net surplus was attributable to a decrease in impairments through the income statement, from -$9,92 million to $1.6 million, as there was a limited growth in the loan group.

Dr Tsumba said some of the loans previously provided for were settled in the period under review.

Net interest income declined by 4 percent compared to the same period in 2015, while fee and commission income increased by 5,8 percent.

Comparatively, operating expenses increased by 10,7 percent, thus increasing the Society’s cost to income ratio from 54,3 percent in 2015, to 60,3 percent in 2016.

Dr Tsumba said “Total assets increased by 7,3 percent, from $923 million in June 2015 to $991 million in June this year while deposits grew by 6,7 percent during the same comparative period.

“The Society’s total loans and advances increased by 7,6 percent from $496 million, as at June 30, 2015, to $533 million, as at June 30, 2016.”

The Society’s prudential liquidity ratio stood at 36,5 percent, against the minimum regulatory ratio of 30 percent. In future prospects Dr Tsumba said together with Old Mutual the Society believed extended period of economic decline in the country would come to an end and therefore had adopted a long term view, to follow opportunities that were not apparent in the short term.

“As a result, the Society continues to invest in its customers by pursuing initiatives to enhance its role in both housing finance and banking.

“As these initiatives are progressively realised, the Society, as part of a strong and integrated financial service group, will remain a positive and progressive force in the country’s financial services sector and in the economy as a whole,” added Dr Tsumba. — New Ziana.

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