Message Mer 20 Mar 2013 13:00

Investrust records increase in profit

INVESTRUST Bank has recorded an increase in profit to KR14.34 million (K14.34 billion) as at December, 2012, from KR5.75 million (K5.75 billion) recorded previously.
The bank also recorded an increase in its operating income to KR139.42 million (K139.42 billion) in 2012 from KR101.48 (K101.48 billion) the previous year representing a 37 percent growth while total operating costs increased by 40 percent.
According to the bank’s financial results for 2012, it attributed the increase in operating costs to increase in the scope of operations, inflationary increase in cost of goods and services.
Other attributes are increase in staff costs related to growth in staff complement mostly in operations and commercial units.
“The bank recorded a profit after tax of KR14.34 million (K14.34 billion) during the year 2012 compared to 2011 KR5.75 million (K5.75 billion), denoting a 149 percent year-on-year increase,” reads the report.
The bank says actual outturn on costs in the period under review was however largely in line with the operating plan.
It however, says impairment provisions reduced by 25 percent during 2012 compared to 2011.
The bank attributed the reduction to an improvement in the overall quality of the loan portfolio arising from improved collection and recovery methods.
On the outlook, the bank plans to continue on its growth path by taking services to new locations by opening more branches in 2013 and beyond.
“We remain optimistic about the potential of the Zambian economy. The economic fundamentals remain strong, with the inflation rate within single digit, positive balance of payments and strong gross domestic product growth.
Significant growth has been witnessed in agriculture, tourism and infrastructure development whilst mining activity is on the rise owing to new investments in the sector projected at about US$3 billion and expected to increase annual copper production by over 50 percent to 1.5 million tonnes by 2015,” reads the report.