TIB Development Bank
has considerably reduced its net loss 17 times to 582m/- in this year quarter
two (Q2) after cutting expenses.
The bank net loss
reduction came after slashing its workforce from 168 of similar quarter last
year to 145 staff in Q2 this year.
The staff expenses,
salaries and benefits, went down 10 per cent from 4.05bn/- to 3.63bn/- while
other noninterest expenses cut from 2.24bn/- to 2.16bn/-.
According to the
financial statement released yesterday, the development bank set aside 6.63bn/-
in Q2 for impairment losses compared to 16.71bn/- of Q2 last year.
Also TIB wrote off
23m/- in bad debts in Q2 against a titanic 3.28bn/- struck off balance sheet in
Q2 last year.
However, despite
reducing a fund for bad debts, the bank nonperforming loan ratio increased 42
per cent in Q2 from 38 per cent in Q1 this year. Industry NPLs benchmark is 5.0
per cent.
The bank loaned out
590.12bn/- in Q2 down from 640.44bn/- in Q1, which was 7.0 per cent lower. On
other hand customer deposits also sunk 7.0 per cent to 260.73bn/- from
280.44bn/-.
Despite decreasing of
loan amount the bank net interest income increased by some 5.0 per cent to
10.79bn/- in Q2 from 10.2bn/- similar quarter last year.While nonincome
interest declined by almost half to 829m/- from 1.94bn/-.
In quarter one this
year, TIB Development Bank was among top five banks with high NPLs.
The bank NPLs was in
an increase pattern in since last year’s Q4. The ratio climbed to 34 per cent
in Q4 last year then 38 per cent in Q1 and 42 per cent in Q2.
TIB Development Bank,
with two subsidiaries—TIB Corporate and TIB Rasilimali, brokerage firm, is the
premier national development financing bank for promoting sustained economic
growth and poverty alleviation.
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