Mr Farai Mutamangira
Business Reporter
Allied Bank recorded a $4,3 million loss for the half year to June, a steep rise from the $1,6 million loss recorded the previous period as the bank faced cash flow difficulties in consistently meeting its obligations to demand depositors. Revenue for the period went down to $0,291 million from $2,3 million recorded in the previous year.
Total assets went down 18 percent to $31,6 million from $38,6 million recorded in the previous period
Allied Bank’s total liabilities went up 13 percent to $27, 7 million for the period from $24,3 million recorded the same period last year.
“The bank, however, implemented a turnaround strategy in the first quarter of 2014 targeting the rationalisation and optimisation of the bank’s resources. Early green shoots are expected to start showing in the third quarter through to the fourth quarter of 2014,” said Allied Bank board chairman Mr Farai Mutamangira in a statement accompanying the bank’s financial results.
He said the bank and its shareholders efforts initiated in the first quarter of 2014 will see the first tranche of 25 percent of capital being booked in the third quarter of 2014 with the remaining 75 percent expected in the fourth quarter of 2014.
Mr Mutamangira said this will be followed up with significant lines in the first quarter of 2015.
He said the first half of 2014 was dominated by deflationary pressures emerging as a significant threat to the economy as borrowers were continuously forced to price goods lower, impairing their capacity to service loans.