TIB SLASHES LOSSES, BAD LOANS UP

TIB Development Bank has considerably reduced its net loss 17 times to 582m/- in this year quarter two (Q2) after cutting expenses.

The bank net loss reduction came after slashing its workforce from 168 of similar quarter last year to 145 staff in Q2 this year.

The staff expenses, salaries and benefits, went down 10 per cent from 4.05bn/- to 3.63bn/- while other noninterest expenses cut from 2.24bn/- to 2.16bn/-.

According to the financial statement released yesterday, the development bank set aside 6.63bn/- in Q2 for impairment losses compared to 16.71bn/- of Q2 last year.

Also TIB wrote off 23m/- in bad debts in Q2 against a titanic 3.28bn/- struck off balance sheet in Q2 last year.

However, despite reducing a fund for bad debts, the bank nonperforming loan ratio increased 42 per cent in Q2 from 38 per cent in Q1 this year. Industry NPLs benchmark is 5.0 per cent.

The bank loaned out 590.12bn/- in Q2 down from 640.44bn/- in Q1, which was 7.0 per cent lower. On other hand customer deposits also sunk 7.0 per cent to 260.73bn/- from 280.44bn/-.

Despite decreasing of loan amount the bank net interest income increased by some 5.0 per cent to 10.79bn/- in Q2 from 10.2bn/- similar quarter last year.While nonincome interest declined by almost half to 829m/- from 1.94bn/-.

In quarter one this year, TIB Development Bank was among top five banks with high NPLs.

The bank NPLs was in an increase pattern in since last year’s Q4. The ratio climbed to 34 per cent in Q4 last year then 38 per cent in Q1 and 42 per cent in Q2.

TIB Development Bank, with two subsidiaries—TIB Corporate and TIB Rasilimali, brokerage firm, is the premier national development financing bank for promoting sustained economic growth and poverty alleviation.

DailyNews