Opportunity Bank Malawi continues loss making trend

Audited financial results for the year ended December 31, 2012 for Opportunity Bank Malawi show that the microfinance institution has registered another net loss of K197 million.

This is from another net loss of K774.7 million which Opportunity Bank also registered in 2011.

The bank gained its popularity as the bank for the rural masses by pioneering mobile banking services which saw its vans running adhoc bank outlets across the country to rope in the unbanked population.

The bank’s chairman Francis Pelekamoyo said they had incurred the losses due to non-repayment of loans and loss of business experienced two years ago.

Pelekamoyo: There will be good results this year
Pelekamoyo: There will be good results this year

“A number of strategies were implemented in 2012 in order to turn the bank to profitability. The bank reduced its net loss after taxes from K774 million in 2011 to K197 million in 2012 representing an improvement of 74 percent.

“Despite the tight liquidity situation experienced in the banking sector in 2012, the bank maintained strong liquidity position in the year,” said Pelekamoyo.

The bank’s statement of financial position shows that it has loans and advances to customers of K3.7 billion up from K3.2 billion in 2011 with total assets at K11.3 billion down from K11.8 billion.

However, the chairman said Opportunity Bank anticipates a good performance this year as turnaround strategies are bearing fruits with monthly profits recorded.

“The banks is opening a number of outlets in all parts of the country in order to drive inclusion agenda to transform the lives of financially excluded people through the provision of financial services,” said Pelekamoyo.

He said the bank is expanding its production offering and delivery channels to provide affordable and convinient services to the target clients.

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