Investrust Bank Plc FY 2013 results


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Investrust Bank Plc FY 2013 results

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Investrust Bank Plc FY 2013 results

  1. 1. Published in accordance with the requirements of Securities Act, Rule 17(2) of the Securities (Registration of Securities) Rules 1993 ZMW’000 AUDITED RESULTS Interest Income Interest Expense Net Interest income Other Operating Income Other Comprehensive Income Gain on Revaluation of Property Total Comprehensive Income for the Year (Loss) / Earnings per share (Loss) / Profit before Taxation (Loss) / Profit attributed to Shareholders Net Interest and other Operating Income Income Tax ZMW’000 ASSETS Cash, Balances with Bank of Zambia & other Banks Treasury Bills & GRZ Bonds Loans and Advances (Net of Provisions) Other Assets Total Assets LIABILITIES Customer Deposits Other Liabilities 198,493 261,831 696,379 157,788 1,314,491 31-Dec-13 123,130 (61,892) 61,239 85,974 3,737 (6,539) 147,213 (6,517) (2,780) 3,594 814 14,341 - - - 31-Dec-12 113,065 (38,934) 74,131 72,142 146,273 (K0.60) 20,880 K3.07 14,341 227,864 242,700 733,341 72,799 1,049,199 146,446 1,276,704 1,276,704 1,034,480 198,138 1,232,618 1,195,645 81,873 1,314,491 81,059Shareholders Funds Total Liabilities and Shareholders Funds Final dividend per share STATEMENT OF FINANCIAL POSITION 31-Dec-13 31-Dec-12 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (Registered Commercial Bank) FINAL RESULTS FOR 2013 ------------------------------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------ ZambianInside Ody’s Building, Great East Road, Plot No. 19028/19029 P.O. Box 32344, Lusaka. Tel: 294682, Fax: 294659 BANKPROFILE Investrust Bank Plc is publicly listed on the Lusaka Stock Exchange (LuSE). It is the only wholly owned indigenous bank in Zambia. The Bank currently has a network of 24 branches and 2 agencies across Zambia, and offers the full range of banking services to customers across all economic sectors, including retail (individuals, MSMEs), NGOs, parastatals, Government agencies and private corporate institutions. The Bank employed 458 staff as at 31 December2013. FINANCIAL HIGHLIGHTS Statement of Comprehensive Income - 17% reduction in Net Interest Income - 40% increase in Net Fees and Commission Income - 10% reduction in Foreign Exchange Trading and Revaluation Income - 1% increase in Total Operating Income - 11% increase in Staff Benefit Costs - 25% increase in Administration and Other Operating Expenses Statement of Financial Position - 3% increase in Total Assets - 5% reduction in Loans/Advances - 1% reduction in Customer Deposits - 1% increase in Shareholders Equity REVIEWOF FINANCIAL PERFORMANCE The Bank recorded loss after tax of ZMW2.78 million for the year ended 31 December 2013 (2012: profit after tax of ZMW14.34 million), and total comprehensive income of ZMW814 thousand in 2013 (2012:ZMW14.34 million). Net interest income reduced by 17% during 2013 to ZMW61.24 million (2012: ZMW74.13 million), whereas net fees and commission income increased by 40% to ZMW68.41 million (2012: ZMW49.00 million). Profit on foreign exchange trading and revaluation reduced by 10% to ZMW14.43 million in 2013 (2012: ZMW16.20 million). Total operating income increased by 1% to ZMW147.21 million in 2013 (2012:ZMW146.27 million) while total operating costs increased by 18% thereby affecting operating profit for the year. The total operating income was significantly affected by a sharp rise (59%) in interest expense in 2013 compared to 2012 on account of increased funding costs. The increase in operating costs was explained by the increase in the scope of operations driven essentially by the growth in the branch network and increased resources allocatedtootherbusinessandsupportunits.However,total actualoperating costswerewithin budget. The statement of financial position recorded minimal growth during 2013, with total assets increasing by 3% to ZMW1 314 million at 31 December 2013 (2012:ZMW1 277 million). The growth in total assets was largely onaccountofincreasein governmentsecurities,fixedassetsandotherassets. Economic fundamentals remained relatively strong except for the instability experienced in the exchange rate that saw the Kwacha hit its lowest levels relative to the US Dollar and other major currencies. Copper prices declined during the year whereas the demand for US Dollars remained high and exceeded supply. The economy continued to record positive balance of trade, positive GDP growth and relative stability in inflation rate. Various regulatory and statutory changes implemented in 2012 and 2013 affected business volumes and margins during 2013. Economic prospects remain positive with key economic sectors such as mining, agriculture, tourism,transportandconstructionshowinghuge growth potential. During the year 2013, the Bank opened six (6) new branches; Lusaka (Mumbwa Road), Choma, Kabwe, Ndola (President Avenue and Buteko Avenue) and Mongu thereby increasing the total branch network to twenty five (25). The Bank anticipates to grow its business in the near future through consolidation of its operations and increasing the client base and product offerings and uptake. Management remains focused onachieving plannedoperating resultsthrough execution ofitsstrategic objectives. CAPITALPOSITION The Bank maintained adequate capital during the period under review. Shareholder equity increased by 1% during 2013. The Bank is on course with the capital raise exercise meant at increasing its primary capital andhopestomeetthe revisedlimitwithin the extendedtimelinesgranted by the BankofZambia. DIVIDENDS TheDirectorsrecommendthat nodividendbe proposedforthe year ended31December2013. BY ORDER OF THEBOARD Cuthbert K.Tembo COMPANYSECRETARY/LEGALCOUNSEL OUTLOOKANDPROSPECTS