ZB Bank Profit 38 Percent Up

ZB Financial Holdings has recorded a 38 percent increase in net profit for the half year ended June 2017 with 97 percent of the profit attributed to equity of the parent company.

According to the Group Chief Executive, Ron Mutandagayi, the financial services company made a profit of S$8.2 million compared to US$5.9 million in the comparative period in 2016.

Mutandagayi the performance is on the back of improved revenue performance, enhanced by dividend accruals on investments, increased transaction volumes and improved net insurance premium out-turn.

“The performance is on the back of improved revenue performance, enhanced by dividend accruals on investments, increased transaction volumes and improved net insurance premium out-turn,” he said.

He added that net revenue increased by 17% from US$29.4 million in 2016 to US$34.5 million during the period under review due to contributions from a substantial Treasury.

“Net interest income increased by 13% to US$9.2 million whilst interest rates generally softened as financial intermediaries maintained long positions whilst rate ceilings on credit facilities were further reduced by the Reserve Bank of Zimbabwe in the second quarter.

“The increase was a result of contributions from a substantial Treasury,” said Mutandagayi.

Bills portfolio transacted in prior years at bargain discount levels as well as the improved quality of the underlying credit book.

A net charge of US$1.3 million was posted in respect of the lending book against a net recovery of US$2.0 million in 2016 as loan recovery remains a focal area.

According to Mutandagayi, net insurance premiums amounted to US$4.9 million against US$4.3 million in the comparative period in 2016.

Operating expenses increased by 10% from US$21.8 million to US$23.9 million, driven by business acquisition costs and an increase in technology related costs as the usage of electronic platforms became more pervasive.

Total assets receded by 2% to close at US$430.8 million as at 30 June, 2017. Earning assets contributed 72% to total assets, having increased from 70% as at 31 December, 2016.

Total deposits reduced by 6% from US$275.3 million as at 31 December, 2016 to US$259.8 million as at 30 June, 2017. Deposits however remained transient and thus not suited for the creation of long dated assets.

Net advances decreased marginally as facility utilization by borrowing clients remained low. Gross advances however increased by 6% on account of unfunded guarantee draw downs.

According to Mutandagayi, the group invested in a further 3 000 Point of Sale machines in order to enhance customer convenience.

%d bloggers like this: