ZB holdings posts 75pc increase in total income

ZB Financial Holdings posted 75 percent increase in total income of ZW$70,542 billion in the period ending 31 December 2022 from ZW$40,343 billion in the prior year on the back of a significant rise in trading income and fair value credits.

The financial institution said net interest income increased by 77 percent, from ZW$11,359 billion in 2021 to ZW$20,050 billion.

“The Group recorded a 75 percent increase in total income from ZW$40,343 billion in 2021 to ZW$70,542 billion in 2022. This positive outturn was achieved on the back of significant rise in trading income and fair value credits,” said the institution in its audited financial results for year ended 31 December, 2022.

“Net interest income increased by 77 percent, from ZW$11,359 billion in 2021 to ZW$20,050 billion in 2022. The performance was underpinned by the growth in the loans and advances book. Gross loan impairment charges to the income statement surged by 229 percent, from ZW$2,136 billion in 2021 to ZW$7,035 billion in 2022.

“As a result, net income from lending activities registered a growth of 41 percent, from ZW$9.224 billion in 2021 to ZW$13.015 billion in 2022.”

The Group’s commissions and fees moved up by 38 percent from ZW$11.570 billion in 2021 to ZW$15.910 billion.

It noted that improvement in commissions was supported by growth in both the number of customers and volume of transactions as a result of the Group’s Organisational Transformation Programme journey.

ZB Holdings said other operating income improved by 394% from ZW$4.500 billion in 2021 to ZW$22.237 billion.

Net insurance related earnings increased by 36 percent, from ZW$2.854 billion in 2021, to ZW$3.889 billion in 2022, on the back of a 120 percent rise in gross premiums from ZW$6.814 billion in 2021 to ZW$15.014 billion last year.

In the period under review, ZB Building Society posted a profit after tax of ZW$4.472 billion as compared to a profit of ZW$2.807 billion in the prior year.

The Society’s total assets stood at ZW$17.742 billion as at 31 December 2022, from ZW$10.093 billion as at 31 December 2021.

The financial entity noted that it has adopted a regional expansion strategy, and in November last year, it successfully launched reinsurance operations in Botswana.

In the period under review, the group acquired additional equity interest in Mashonaland Holdings Limited and achieved a shareholding of above 50 percent, granting it control of Mashonaland Holdings and subsequently became a subsidiary of the Group with effective 31 December 2022.