Tetrad in $16 million loss

Published: 28 May 2014

Listed financial concern Tetrad Holdings Limited posted a staggering loss of $16,2 million for the year ended September 31 2013 weighed down by provisions for the banking division's non-performing loans.

The group was coming from a profit position of $939 859 in the previous year.

In a statement accompanying financial results for the year ended September 30 2013, group chairman Miccah Moyo said the Tetrad Investment Bank had made a loss of $21,6 million from $156 431 in 2012 due to a high level of non-performing loans.

"The board took a position post financial year to clean up the loan book and thus provided in full for all non-performing loans amounting to $15 million. These provisions coupled with the suspension of interest on non-performing loans weighed down the results of the bank and the group," he said.

The bank made an operating loss of $21,4 million against a loss of $571 204 in the prior year. Total income before allowance for credit losses declined by 32 percent from $8,1 million to $5,5 million whilst operating expenses rose from $8,2 million to $12 million, a growth of 45 percent.

However, the bank's total deposits grew by 5 percent from $88,2 million to $93 million in the period under review. Moyo said TSF management company recorded a loss after tax of $287 317 compared to $324 134 in the previous year.

Total income grew by 6 percent to $1 081 344 from $1 022 474. TSF's total expenses stood at $1,4 million, a 9 percent increase from $1,25 million in the comparable period.

Funds under management declined by a marginal 0,1 percent to $43,7 million in the review period from last year's $43,8 million.

The property division, Tetrad Properties made a profit after tax of $6,2 million up from $2,2 million in the prior period.

Rental income declined 45 percent to $1,13 million from $2 million in the previous period as a result of restructuring of the property portfolio.

The insurance division also achieved an increase in underwriting profit from $842 435 to $2,6 million in the period under review on the back of a loss ratio less than 30 percent against 105 percent in the prior year.

Tetrad's strategic focus is on mining, agriculture and property. Moyo said the group had struck a joint venture partnership with a foreign investor in its gold mining operations which is expected to be profitable within 6 months.
- BH24

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