By JAMES KUNDA? –

INVESTRUST Bank Plc has posted a loss of K3.5 million in the first six months of 2014, company secretary Cuthbert Tembo has said.
Mr Tembo said in the financial period ended June 30, 2014, the bank recorded profit of K1.18 million, K3.52 million less than the K4.7 million it posted during the six months ended June 30, 2013.
“The bank recorded profit after tax of K1.18 million for the half-year ended June 30, 2014 compared to K4.7 million during the half year ended June 30, 2013,” Mr Tembo said.
He said the bank, however, anticipated to expand business in the near future through consolidation of its operations and increasing its client base as well as product offerings and uptake.
“Management is focused on achieving planned operating results through the execution of its strategic objectives,” he said.
Mr Tembo said the bank maintained adequate capital during the period under review, while it remained on course with the exercise to generate capital meant to meet the revised limit within the extended timelines granted by the Central Bank.
On the state of the economy, Mr Tembo said despite the volatility in the exchange rate that was characterised by a sharp depreciation of the Kwacha and increase in the money market rates, economic fundamentals still remained strong, especially after appropriate market interventions undertaken by the Bank of Zambia.
“There is now relative stability in the exchange rate and the inflation rate as the economy has also continued to record a positive balance of trade and Gross Domestic Product (GDP) growth, as such economic prospects remained favourable,” he said.
Mr Tembo said key economic sectors such as mining, agriculture, tourism, transport and construction remained active with huge growth potential.
On dividends, Mr Tembo stated that directors recommended that no interim dividend be proposed for the half year ended June 30, 2014.