THE glow of Barclays Zimbabwe has not waned despite an economic recession that affected the banking sector last year.
The agility and ability to read the environment and to adopt suitable strategies is what made the difference for Barclays during its interim period ending June 30 2009.
The bank’s capital position has remained strong and is already complaint with the regulatory minimum capital requirements of US$12,5 million set for March 31 2010 by the Reserve Bank.
Capital adequacy ratio of 56% is significantly above the regulatory minimum of 10% and the banks stricker internal benchmarks, reflecting the benefit of value reservation strategies taken during previous periods.
The bank is also “highly liquid” with a liquidity ratio of 96% as at June 30 2009.
In the interim period ending June 30, the bank posted attributable earnings of US$672 000 translating to basic earnings per share of US$0,03c and a return on equity of 2,2% for the first half of the year.
“These results largely reflect subdued revenues as the economy adjusted to the change in functional currency,” said Barclays chairman Anthony Mandiwanza in a statement accompanying the bank’s financial statement.
A total of 98% ofÂ the bank’s income comprised non-funded income whilst the costs to income ratio at 92% is more than twice the average achieved by the bank historically.
“The cost to income ratio reflects the need to grow revenue streams to complement the significant cost containment initiatives the bank has been implementing,” he said.
Going forward Barclays managing director George Guvamatanga said he was optimistic about the future which will be “more enabling, allowing us (Barclays) to do even more for all key stakeholders”.
He said the bank was in a good position to capitalise on improvements in the operating environment with the objective of booking more business with existing and new customers during the current reporting season.