Banc ABC thrives through COVID-19

Banc ABC has recorded a steady performance amid the challenges brought about by the Corona Virus Disease (COVID-19) pandemic. This was revealed on the company’s financial statements for the year ended December 2020.

β€œThe company achieved a modest performance in 2020. Despite the economic and global challenges, income has showed relative resilience and growth in the case of Net Interest Income (NII), although this was insufficient to offset the challenges of increases in expected credit losses” the financial report revealed.

According to the report, the company however recorded a Seventeen percent (17%) decline in Profit Before Tax (PBT). The company recorded a One hundred and twenty-four point nine million pula (P124.9 million) against the preceding year’s One hundred and fifty point six million pula (P150.6 million). In overall, the Bank recorded a decline of Twenty-five point seven million pula (P25.7 million) in PBT. However, the net interest income grew by two percent (2%) while non-interest income decreased by One percent (1%). The expected credit losses increased by Twelve million pula (P12 million); from Three point seven million pula (P3.7 million) to Fifteen point seven million pula (P15.7 million).

The steady performance is attributed to the bank’s headstrong attitude amid the challenging conditions. Generally, the Bank performed better on the first quarter of 2020, having picked the momentum from the last quarter of 2019.

β€œThe Bank has continued to invest in its transformation journey, as seen in a 22% increase in Depreciation and Amortization Expenses as key transactional banking projects came online during the year. The increased effective tax resulting in a lower profit after tax is largely due to timing differences on capitalization of these projects. The Bank’s return on equity has reduced to about 8% whilst previous year it was at 12%, driven mostly by the reduced performance and increase in the amount of equity held.” the report pointed out.

Related Articles

Back to top button