Investrust Bank Plc. (LUSE: INVESTRUST) reported a K6.4 million net loss in financial year (FY) 2014, more than doubling the loss sustained by the Group in FY 2013 (K2.8 M):
The loss was driven by:
- 19% decline in net interest income
- 56% increase in interest expense due to a rise in market interest rates
- 10% increase in total operating costs due to expansion in operations
Total operating income declined by 3% year-on-year to K143 million.
Investrust saw gross interest income growth by 19% year-on-year to K146 million:
The bank saw customer deposits grow by 35% and also increased their holdings of government securities by 40%. Loans and advances decreased by 18% year-on-year to K568 million. This was the first time Investrust included the results for Zambian Home Loans Ltd (ZHL) – a mortgage financing company in which they have a 51% stake.
Investrust’s stock price closed 2014 unchanged at K13.50.
No dividend was recommended for FY 2014.
In their outlook for 2015, the company said:
The Group is confident about its future prospects going by all the various strategic initiatives implemented by the Bank in the last 3 years and the operationalisation of ZHL. The Bank has expanded its branch network to key economic areas and introduced agency banking to accelerate outreach of banking services to un-served mass-market areas. Further, the bank has introduced a number of alternative delivery channels and new products aimed at enhancing customer convenience and experience. The Bank will focus on growth in key areas of operation whilst containing operation costs within budget. ZHL will continue to market and roll out its mortgage financing product to the market and enlist more institutions.
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *