TETRAD Holdings Limited made an operating profit of US$163 569 for the year ending September 30, 2012, compared to US$756 233 achieved during the same period last year.
Total income rose by 36 percent from US$5 907 346 to US$8 007 793 while operating expenses rose to US$8 258 997 from US$1 259 295 which reflects a 57 percent growth.
In a statement accompanying the group's financial statement chairperson Miccah Moyo said the bank had adopted cost management strategies to reduce expenses.
Deposits grew 72 percent. But the group’s asset management company, TFS Management Company (Pvt) Limited, posted a loss after-tax of US$175 780 compared to a profit of US$181 927 last year.
“Lack of liquidity and a difficult operating environment during the period under review impacted negatively on the performance of the Zimbabwe Stock Exchange and the performance of the asset management unit,” Moyo said.
The group also comprises a micro-finance company Multiridge Finance, an insurance company, THI Insurance; and a property development and management company, Tetrad Properties.
Moyo said the bank was confident of raising US$25 million by the end of December this year, a quarter of the US$100 million minimum capital requirement for merchant and commercial banks.
The Reserve Bank of Zimbabwe (RBZ) in August stipulated that banking institutions were expected to raise US$25 million in capital by December 31.
Moyo said the group had since submitted its recapitalisation plans to the central bank.
“I am confident we will meet the minimum capital requirement within the stipulated time frame,” he said.
Moyo said the group’s “serious” discussions with a potential foreign investor were at an advanced stage.
“The recapitalisation will not only strengthen the bank, but should also provide access to external lines of credit,” he added.
The RBZ raised the minimum capital requirements for commercial banks to US$100 million from US$12, 5 million in an exercise expected to be completed by 2015.
Banks are also expected to comply with 50 percent of the prescribed minimum capital requirements for the applicable class of banking business by June 30 2013.