Trade and Development Bank nets $101 Million in profit
The Trade and Development Bank has recorded a net profit of 101 million dollars, a 7% increase over the $94.7 million achieved in 2015. Operational and financial performance has also continued its upward trajectory recording.
Chairperson of the Trade and Development Bank Board of Governors Hon. Claver Gatete disclosed this during the opening Session of the 33rd Annual General Meeting of the Bank’s Board of Governors in Mahe.
Hon. Gatete informed the meeting that the bank has embarked on rebranding to reposition itself and place it on a firm trajectory of renewal.
“After more than three decades, the PTA Bank has become the TDB,” he said, adding that the rebranding was rolled out on the back of sustained capital growth, improved asset quality, profitability, membership expansion and innovation.
He said the rebranding was anchored on a series of successful institutional reforms aimed at strengthening risk management, corporate governance and talent as well as modernizing the Bank’s physical and technology infrastructure.
From this backdrop, Hon. Gatete said the next chapter for the bank is to develop its Corporate Plan 2018- 2022.
“This Corporate Plan will support the Member Countries make progress towards the SDGs reflected in the African Union’s Agenda 2063 as well as in various strategies of the regional economic communities, such as COMESA, EAC, SADC and IGAD,” he said.
Board member and former Zambian President H.E Rupia Bwezani Banda indicated that as a region, COMESA has made great strides in regional development.
He said: “The TDB should not rest on its achievements and celebrate just yet because there is still a lot of work to done if the region has to be the best.”
President and Chief Executive Officer of the Trade and Development Bank, Admassu Tadesse said despite the 2016 being a tough year economically, both globally and in the region, the eastern and southern African economies covered by the Bank performed much better, with annual growth of about 5%. This notwithstanding the fact the region was largely affected by the depreciation of exchange rates and falling foreign exchange reserves.
“Our Bank, managed to grow its loan assets by 11% year-on-year. Indeed, it is in difficult years and challenging times that we seek to step up our commitment and pick up some of the slack left by international commercial banks,” Tadesse said.
The Bank’s equity grew by 16% during the year, to USD 857m on the back of solid profitability and sustained fund-raising success.
The TDB President further indicated that asset quality continued to be robust, with non-performing loans edging lower from 2.87% in 2015 to 2.85%, well within the 5% target threshold.
He said the Bank will continue in its commitment of strong corporate governance and enhanced risk management as this was necessary to enhance its ratings, raise more and longer term funds and to bring down the cost of funding.