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MBCA shows it can turn tables in retail banking

MBCA Bank showed it could turn the tables in the retail banking market after growing its deposit base 1 161% to $4,2 trillion during the year to December 31, 2005, just a year after starting commercial banking operations.

MBCA, one of the country’s oldest banking institutions establi

shed in 1956, had been operating as a merchant bank.

The commercial bank, targeting the top end of the retail banking market, also grew its asset base to $6 trillion from $630 billion the previous year.

This put it into the top spot as one of the biggest banks in the country by assets, surpassing other commercial banks that had long been on the market.

Profit after tax increased to $745 billion during the year under review, up 856% on the previous year profit of $87 billion.

“MBCA Bank has continued to strengthen its corporate position even after venturing into commercial banking to extend its product lines,” said MBCA’s managing director, Denys Denya.

“MBCA Bank is set to provide greater distribution capabilities by opening new branches,” he said.

MBCA had been subject of a rumour suggesting it was on the market to take over another commercial banking operation targeting the same segment of its retail market.

The rumour mill had been triggered by a new regime by the Reserve Bank of Zimbabwe requiring banking institutions to match their capital levels with US dollars at determined levels for different banking types.

Commercial banks are required to have capital levels amounting to US$10 million by September 30. These would be determined at the ruling exchange rate.

At the current exchange rate, the capital level for commercial banks is $1 trillion. — Staff Writer.

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