Losses widen at Mpofu’s Allied Bank

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STRUGGLING Allied Bank’s loss for the six months to June widened to $4,2 million from $1,6 million in the prior year after a sharp decline in interest income, although ongoing recapitalisation efforts could improve its position in the last quarter, it said on Monday.
Net interest plunged to $186,000 from $666,800 as the bank’s lending fell nearly 50 percent despite growth in deposits.
Loans and advances to customers declined to $2,6 million from $4,1 million while deposits rose to $20,7 million from $18,4 million. Operating expenses dropped marginally to $4,7 million from $5 million.
Chairman Farai Mutamangira said the bank expects to recover in the last quarter of the year driven by ongoing recapitalisation and rationalisation exercises.
As at June 30, the bank’s assets were valued at $31,6 million, 18 percent lower than the comparative period.
Allied, along with Metbank, AfrAsia and Tetrad – is one of the four banks cited by the Reserve Bank of Zimbabwe as being in distress.
The banks are facing liquidity and solvency challenges due to macro and institution specific factors.Advertisement