Allied Bank to open two centres

Published: 04 September 2013

ALLIED Bank Limited says it is planning to open two more service centres in Harare and Bulawayo before the end of the year.

This will be in addition to a branch recently opened in Avondale which offers extended hours of business in keeping in line with their value proposition of providing convenience to customers.

The bank remains upbeat that the macro-economic environment will improve and present new opportunities in the economy. The bank is confident that the successful finalisation of the recapitalisation initiative in the third quarter combined with the enhanced product offering will see them achieve profitability during the first quarter next year.

During the half year ended June 2013, Allied Bank acquired state of the art cash recycling Automated Teller Machines to function as mini branches with the capability of accepting deposits and processing cash withdrawals.

The bank however recorded a loss of $1,7 million in their financials during the first half compared to a loss of $1, 1 million in the corresponding period representing a 55 percent increase in the loss margin.

The bank and its subsidiary's total asset base declined marginally by 5 percent to $38,4 million compared to $60, 8 million as at December 2012 while the net interest income was down by 50 percent to $120 620 from $243 595 in the comparative period prior year.

Operating income during the period under review was $2,3 million which showed a decrease of 7 percent from $2,5 million while the operating expenses were up by $1 million to $5 million from last year's period of $4 million.

"Stringent cost containment initiatives are also being implemented to manage operational costs," said Allied Bank chairman Mr Farai Mutamangira in a statement accompanying the financials.

He said that their thrust in the remaining six months was to increase the balance sheet capacity to lend in order to achieve sustainable growth in interest income. In terms of non funded income, the bank has entered into partnership with a number of service providers to offer their products and services through the bank's countrywide branch network.

The bank is showing its commitment to entrepreneurial growth as it is planning to finance them.

"The bank is also engaged in discussions for a line of credit specifically targeted at personal and SME sectors," said Mr Mutamangira.

Allied Bank has also dedicated a significant portion of the bank's loan book to individuals and SMEs in order to increase employment and offers free banking services to students, senior citizens, churches and schools.
- herald