Zimbabwe’s banking sector had a healthy year in 2016 when it recorded a net profit of $181 million, the Reserve Bank Of Zimbabwe claims.

The central bank reports saying this was an increase of 42 percent from the previous year’s profit of $142 million. RBZ governor John Mangudya revealed this when he released the 2017 Monetary Policy Statement, the state media reports.

The state broadsheet quotes Magudya saying, “the banking sector remained profitable during the year ended December 31, 2016, with an aggregate net profit of $181,06 million, an increase of 42,36 percent from $127,47 million reported for the corresponding period in 2015.

“The increase translated to improved average return on assets and return on equity from 2.07 percent and 11,03 percent, to 2,26 percent and 12,64 percent, respectively.

“The increase in profitability was largely driven by lower loan loss provisions in line with improving asset quality, lower interest expenses as well as continued realignment of cost structures at most institutions.
Last year saw the start of massive cash shortages, a situation which was exploited by some banks, who levied very high rates for withdrawals as well as electronic transfers.

“The RBZ had to step in and direct the banks to charge lower rates after a public outcry.”