Agricultural bank posts first profit

The state-owned development finance institution which was established in August last year, posted a net profit income of 797m/- in quarter one (Q1) of this year coming out of red of 425m/- of same quarter last year.

TADB, according to financial statement released, attributed the profit to net interest income that ranked 2.24bn/- from zero in Q1 2015. On non-interest income the bank made merely 5m/- from fees and commissions against none as the bank start operation last August.

The non-interest expenses went up to 1.45bn/- from 425m/- pushed up by salaries and benefits as the bank increased the number of staff to 41 from 14. The bank assets grew to 63.29bn/- from 61.6bn/-, it has no deposits.

The bank has issued a loan totalling 3.65bn/- up from 2.67bn/- of the Q4 in 2015. The bank was established as an apex national-level bank with the key role of being a catalyst for delivery of short, medium and long- term credit facilities for development of agriculture in the country.

During the launching, the government pledged to raise 800bn/- capital requirement in eight years, meaning raising 100bn/- every year to ensure the bank’s 20-year strategic plan is effectively implemented. The bank will focus on produce best suited to small and medium outfits.

These include maize, rice, fruit, sesame, sugarcane indigenous chicken, horticulture, livestock, fish farming and bee keeping.

SOURCE: DAILY NEWS

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