The Dutch foreign currency exchange auction system continued to support currency stability with annual inflation falling from 348% at the beginning of the period under review, to 106% by June 2021. The Group presented a decent set of financials given sub inflation interest rates. Total income for the bank increased 89% y/y from ZWL$6.02bn in 1H21 to ZWL$11.41bn in the period under review driven by an uptick in interest income which went up 584% y/y from ZWL$549.62mn to ZWL$3.76bn on the back of interest rates repricing and a 68% increase in the loan book. Non-funded income grew 66% y/y from ZWL$5.59bn to ZWL$9.27bn driven by growth in the Agro- Business income, fair value adjustments on financial instruments as well as fee and commission income. Operating costs were up 264% y/y primarily driven by staff costs and admin expenses (up 348% and 201% respectively). Resultantly the cost to income ratio increased from 21% to 42%. The Group registered a 9% y/y growth in PAT to ZWL$1.43bn from 1H20’s ZWL$923.92mn...
