ACB Bank downsizes over performance

Dar es Salaam. Akiba Commercial Bank (ACB Bank) will slash its workforce after poor financial performance.

Speaking to The Citizen at her office, ACB Bank managing director Juliana Swai revealed that the bank’s board of directors has already okayed the move.

“We have centralised business operations since November, last year, because the business has not been doing well,” she said, adding: “We’ve been informing our workers about these developments.” She declined to disclose details, “This is still an internal matter and I’m surprised to see a memo circulating on social media platforms. I don’t know who leaked the information.”

She added that those earmarked for retrenchment will receive their letters within 30 days of issuance of the memo. The memo was issued on Monday.

A financial statement, which was issued by the bank in the first quarter of 2018 showed that the bank’s income statement had dropped to Sh7.97 billion from Sh11.057 billion in the first quarter of 2017.

The bank’s balance sheet also showed that its cash has declined to Sh12.023 billion during the first quarter of this year from Sh15.35 billion in the fourth quarter of 2017.

The statement also shows that the bank’s total assets shrank to Sh165.1 billion in Q1, 2018 from Sh183.6 billion during Q4,2017 .

The banks net asset has also slowed to Sh22.7 billion in Q1, 2018 from Sh25.5 billion recorded in Q4, 2017.

The amount of loans issued by the bank also went down to Sh84.5 billion in Q1, 2018 from Sh101.7 billion in Q4, 2017.

The bank’s interest income has also declined to Sh7.9 billion in Q1, 2018 from Sh11 billion in Q1, 2017.