Barclays loan book up 26% in FY13

Published: 12 February 2014

Barclays Bank Zimbabwe grew its loan book by 26% in the full year ended 31 December 2013 and will focus on increasing the level of lending in 2014, MD George Guvamatanga told an analyst briefing yesterday.

"We grew the loan book by 26% whilst impairments remained below 1%. We also leveraged on the group capabilities on lending and channel."

He also said the bank arranged over $40 million offshore facilities.

"In the outlook for 2014 we are still focused on increasing the levels of lending."

He added that they will focus on balance sheet optimisation, integration of e-channels to increase penetration.

Contrary to the perception that all personal lending is non-productive, he argued, they have observed that most borrowers utilise the funds in productive activities such as small farming ventures and refurbishing residential properties.

Guvamatanga told analysts that Barclays is committed to continue with their "safe bank" model even as the lending is increased.

Giving the review of operations, he said; "In the banking sector, we still believe that its stable but very delicate with liquidity constraints in the market which is dominated by short term deposits. About 85% of the total market deposits are still transitory in nature."

He noted that there are a lot of structural issues and challenges in the economy which led to very risky lending environment with NPLs at 15.9% as at December 2013.

Guvamatanga said the Bankers Association of Zimbabwe viewed the caps on fees and interest rates brought about by the MoU as some form of price controls.

"If there is actually need for control of prices we don't believe that that control should only be limited to the banking sector because we still have to pay the same utilities.." he added.
- zfn

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