Barclays to maintain a cautious lending regime

Published: 04 July 2013

BARCLAYS Bank (Zimbabwe) has reiterated that it would maintain its cautious lending regime, as default rates in the sector continued to increase.

Giving a trade update as the bank's Annual General meeting (AGM) last week, managing director, George Guvamatanga, said the bank would maintain a prudent lending regime underpinned by steady growth.

"The bank will continue to grow a quality loan book and actively leverage its synergies. We will also broaden product suite to satisfy unique customer requirements. Risk and control processes will continue to be benchmarked against best practices," he said

He said Barclays would continue to drive a safe banking model underpinned by a robust risk management framework.

Barclays Zimbabwe's net interest income for the first five months of the year grew by 53 percent from 33 percent last year while non-funded income grew four percent.

The loan-loss ratio remained low at less than one percent and the bank intends to maintain it at that level.

"Non-funded income recorded a growth albeit lower than last year's nine percent. The lower growth reflects constrained transactional growth and the effects of capped fees and charges," Guvamatanga said.

Customer accounts had grown to around 178 000 from 160 000 last year. Guvamatanga said the growth had been steady and the momentum is expected to continue in the outlook.

Customer assets were at US$99 million, an increase of seven percent from last year's US$91,7 million. The growth is spread in both retail and corporate loans. However 85 percent of customer assets are in the corporate book.

The loans to deposit ratio was at 44 percent from 40 percent last year while the capital adequacy ratio have been maintained above regulatory minima. The banks customer liabilities at US$224,8 million have remained largely unchanged.

Barclays Zimbabwe, a target of government's controversial indigenisation programme, insists it was indigenised way before the regulations were gazetted two years ago, and would take further measures to raise the level of indigenisation.

Guvamatanga is on record saying the bank was the first bank to indigenise when it offered 30 percent of its shares on the Zimbabwe Stock Exchange in 1991.
- fingaz