Investrust Bank Plc (Investrust) recorded an 8.22% decrease in net interest income to K40.82 million during the year ended 31st December 2016 (2015: K37.72 million). Interest rates on loans and advances were adjusted upwards following the removal on the lending rate caps for commercial banks. Nonetheless, the growth in net interest income remained constrained due to the high cost of funds on term deposits which form a significant part of Investrust’s deposit base.
Total operating expenses reduced by 19% to K148 million (2015: K183 million). This was mainly attributed to a non-recurring expense in respect of redundancy and severance booked the previous financial period. Salaries and staff benefit costs declined by 4% to K65 million (2015: K67 million). During the year under review, the bank recorded a loss of K48 million (2015: K51 million).
During the financial period, Investrust embarked on a capital raising exercise through a Clawback Rights Offer to meet the minimum capital requirement set by Bank of Zambia. ZCCM-IH fully underwrote the offer. Subsequent to the completion of the Rights Offer, ZCCM-IH’s shareholding increased from 10.6% to 48.6%. In the latter part of the financial period, Investrust undertook another capital raise through the issuance of non-voting preference shares, which saw the bank’s primary capital increase beyond the minimum capital requirement.
The bank’s share price on the LuSE closed the period under review at K13.50 (2014: K13.50).
There were no dividends declared during the financial year ended 31st December 2015 (2014: Nil).