Agribank, FBC Bank raise RTGS$40 million agro bills in support to farming season

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BY Alois Vinga

TWO local financial institutions put together RTGS$40 million worth of agro-bills to support the 2018/19 farming season.

Agribank and FBC Bank jointly raised the money a 100 percent increase from the RTGS$20 million raised in the previous farming season according to officials.

Sam Malaba the Agribank chief executive officer told an analysts briefing, Tuesday that the financial institution also received money under government’s livestock facility programme.

“In line with farming, Agribank also received RTGS$6 million livestock facility in 2018 from the shareholder earmarked for restocking and growth of the country’s livestock.

“Apart from this, the bank secured US$10 million from the Afreximbank in 2018 which will be channeled towards capacitating agricultural exporters’ value addition,” said Malaba.

Meanwhile, Malaba said Agribank has reported a 63 percent growth in profit, after tax of RTGS$12.9 million for the 2018 financial year, compared to RTGS$7.9 million in 2017.The profit for the year was mainly driven by growth in non-interest income as well interest income, against the marked growth in the loan book during the year.

Interest income grew by 21.2 percent from RTGS$30.5 million for 2017 to close 2018 at $37.1 million.

Gross loans and advances grew by 53.4 percent from RTGS$147.2 million in 2018 and most of the funding went towards the expansion of support to agriculture through both on balance sheet and off balance sheet.

For the financial year 2018, total income from e-channels injected RTGS$12.3 million making up 75 percent of total non- interest income.

Total assets increased by 14 percent, from RTGS$268 million in December 2017 to RTGS$306 million as at end of December 2018, due to lines of credit accessed through Reserve Bank of Zimbabwe and capital injection.

Gross loans and advances were RTGS$147 million representing a 53 percent increase from RTGS$95 million in 2017.

Deposits from customers closed the year at RTGS$173 million representing marginal increase from the 2017 figure .The liquidity ratio closed the year at 69 percent and well above the RBZ regulatory minimum requirement of 30 percent.

Treasury bills holdings at RTGS$70 million made up 23 percent of total assets while the shareholders’ funds grew by 37 percent.

Treasury bills are borrowing instruments, which have a tenure of 270 to 360 days, with a government guarantee and hold prescribed asset status, liquid asset status and tax exemption.