Huge impairments drag BancABC into red

Mudavanhu
Mudavanhu

ABC Holdings recorded an attributable loss of P438 million in 2014 primarily as impairments nearly doubled to P650 million from P328 million in 2013.

Addressing the media on Tuesday, acting group Chief Executive Officer (CEO), Blessing Mudavanhu, said the significant jump in impairments was a result of efforts to clean up the balance sheet after the banking group was in August last year acquired by London Stock Exchange (LSE) listed Atlas Mara.

“Despite the loss, the groups’ operations still have a high economic value due to a sound balance sheet. The loss was largely due to increased impairments as well as reduced margins compared to the prior year. The new shareholders would want to start on clean slate,” he said.

Editor's Comment
Micro-procurement maze demands urgent reform

Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...

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