Insurance commission contributes 3% to Agribank’s total income in five months to May 2017

Harare – Agribank says income contribution from its Agri-Insure cluster for the 5 five months to May 2017 was 3% to total income thus the Bank is expanding initiatives to grow the commission income.

The Bank act as an agent for Alliance Insurance and offers products that range from vehicle cover ,households, personal assets, immovable property, crop insurance and accident cover among others.

Agribank Head of Marketing Joseph Mverecha said that insurance commission is one of the growing income lines for the bank which is projected to grow.

The commission stood at $323 885 as at May 2017 against a total non-interest income of $7, 3 mln   contributing 4% to the total.

“Insurance income accounted for 4% of non-interest income and 3% of total income for the period and the outlook is positive,” he said.

Mverecha said through the partnership with Alliance Insurance, the Bank will continue to add value to customers through a diverse range of initiatives that will optimize benefits for the customers.

He said the insurance products which are currently available in all the bank’s 45 branches throughout the country.

Meanwhile, giving a trading  update for the five months at the bank’s  annual general meeting yesterday Chief executive officer  Sam Malaba profit position at $1,8 million was above budgeted profit of $436 000.

He said the bank benefited from transfer of Non-Performing Loans (NPLs) to the Reserve Bank of Zimbabwe debt assumption vehicle ZAMCO.

The bank also recorded a profit of $4,8 million  for  the year ended 31 December 2016 recovering from a  $6,3 mln loss incurred in  2015.