LONDON (Alliance News) - Atlas Mara Ltd, the African banking sector investor set up by former Barclays PLC chief Bob Diamond, on Tuesday said its profit after tax declined in the first nine months of 2016, though its deposits and loans grew and drove total income for the group higher.
Atlas Mara said it made a reported post-tax profit of USD4.0 million in the nine months to the end of September, down from USD7.1 million a year prior and hit partly by depreciating currencies in Africa.
Total income in the period rose by 15%, and by 31% in constant currencies, driven by higher non-interest income.
Costs increased in the first nine months, up 19% due to new acquisitions that Atlas Mara made and investments in boosting the digital service capacity of the banks it owns.
Deposits were up 32% in constant currencies in the first nine months year-on-year, while loans and advances rose 23%, also in constant currencies. Non-performing loans in the portfolio fell to 14.9% of the total loan book form 15.4% at the end of September a year prior.
"I am pleased with the progress we have made in reshaping the business to respond to a more challenging macroeconomic environment. Our strategy of buying, protecting and growing sub-Saharan Africa banks hasn't changed. What has changed is how we are going about achieving our objective of becoming the region's premier financial institution," said John Vitalo, Atlas Mara's chief executive.
Vitalo said Atlas Mara's key focus is on streamlining its operations, keeping costs under control and investing in digital banking initiatives, and he said this will remain the group's focus going into 2017.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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