Published: 25 March 2014

MBCA Bank (MBCA) - a unit of Nedbank group - says it is working on accessing loan financing from Export Credit Insurance Corporation (ECIC) of South Africa.

"The bank (MBCA) is in contact with our clients to work on modalities for them to access Nedbank Capital's ECIC backed facility," said MBCA's chairman Willard Zireva.

This comes as Zimbabwean companies are currently distressed and in dire need of loans to boost working capital and subsequently retool to enhance capacity utilisation.

The main purpose of the ECIC backed facility is to provide loan finance for capital goods and services projects in foreign countries and insurance cover on risks associated with investments.

ECIC also facilitates South African trade by underwriting export credit loans and investments outside the country in order to enable its contractors to win capital goods and services contracts in other countries.

Meanwhile, in the year to December 2013 the MBCA reported a 19 percent decrease in after tax profit to $4 045 million from $4,96 million recorded in prior year.

"This decrease in profit was mainly attributable to the increase in operational expenses which grew to $17 million, representing a growth 14 percent from the prior year figure of $14,9 million,' said the bank's managing director Charity Jinya.

She said the rise in operating costs was mainly due to an increase in marketing and deposit protection costs.

Retail banking contributed 43 percent towards total operating income, up from 39 percent in prior year.

"The division continues to focus on account recruitment to increase non-interest revenue generation capacity as well as growth in deposits through expansion of the network in line with growth sectors," Jinya added.

During the year under review, the bank's total balance sheet grew marginally to $179,68 million from $179,26 million.

Loans and advances constituted 43 percent of the balance sheet compared to 49 percent in 2012 while cash and cash equivalents grew to 42 percent up from 37 percent in 2012.

"Our total deposits decreased by six percent to $131,30 million from $140,32 million in line with the subdued asset growth. Demand deposits continued to constitute the bulk of deposits for the bank," said Jinya.

Corporate banking contributed 38 percent of total operating income down from 45 percent.

"The division's performance continued to be biased towards agriculture, mining and retail sectors, with inroads having been made to provide services to new players in these sectors," she said.

The bank's treasury arm noted that money market activities were subdued in 2013 due to the continued absence of the Lender of Last

Resort facilities, limited access to regional and international credit lines and lack of tradable assets.

The division contributed 19 percent of the bank's total operating income up from 16 percent in 2012.
- dailynews

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