Q FM Africa's Modern Radio
Barclays Bank Zambia has announced a first quarter profit before tax of k88 million representing a growth of 60% compared to the same period last year.
Announcing the bank’s quarterly financial results for the quarter ended 31st March 2017, Managing Director Mizinga Melu says the bank’s operating costs reduced by 9% remaining well controlled and producing cost to income ratio of 56%.
Ms Melu adds that the bank’s customer deposits grew by 3% compared to the first quarter of 2016.
She has attributed the improved financial performance to the positive monetary interventions by the Bank of Zambia.
She points out that the reduction in the policy rate has had a favourable impact on the country’s financial sector.
Ms Melu has also attributed the increase in profit before tax to a combination of reduced interest expenses and operating costs as the bank continues to invest in innovative banking solutions such as mobile and online banking for its customers’ convenience.
She adds that net interest income increased by 9% compared to the first quarter of 2016, mainly driven by optimal utilization of funding sources which resulted in a net reduction in interest cost of 31% compared to the same period in 2016.
Meanwhile, Ms Melu has announced that Barclays Bank Zambia Plc is scaling up its lending facilities to customers as a result of the improved liquidity position in the market.