daniel chigunwe
Business Writer
ZB Financial Holdings (ZBH) says it witnessed limited growth in income in the quarter to September 30, 2024 compared to the prior quarter as a result of reduced growth in fair value credits and foreign exchange gains as well as harsh business conditions.
The group, in a trading update, said total income for the period was ZiG 1,83 billion on year to date and was supported by net interest income of ZiG 282,540 million, driven by improved net interest margins.
“Total income was also supported by commission and fees of ZiG 576.502 million, supported by an increase in electronic banking earnings, a gross insurance premium of ZiG 411,619 million driven by increased sales of funeral cover products, net property income of ZiG 66,434 million as rental income remained stable, and other income of ZiG 1,686 billion,” reads the trading update.
ZBH said its customer base continues to grow across the balance sheet with a deposits balance of ZiG 5,073 billion, up by 73 percent in Q3 from December 2023 and an insurance liabilities balance of ZiG 497 million, a growth of 15 percent from December 2023.
“This was primarily driven by strong customer retention through proffering customer centric products,” the group said.
On the other hand, total assets grew by 44 percent to ZiG 12.638 billion, anchored by growth in earning assets to ZiG 10,401 billion from ZiG 6,970 billion in December 2023.
ZBH said it also saw continued growth in its property portfolio through acquisitions and new developments.
The group said it had a strong capital position in the first nine months of the year with total equity of ZiG 2,266 billion driven by the period’s performance.
ZBH said capital and liquidity levels remained strong with all business units being compliant with minimum regulatory capital requirements apart from ZB Building Society.
The group said it expects to consolidate its banking operations into one banking license in the near future.
Bongani Ndlovu