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ZB Financial Holdings’ loss position for the year ended December 2014 catapulted a massive 2 902 percent to $9,9 million, mainly resulting from heavy restructuring costs.
The financial institution has embarked on deep restructuring of its business portfolio to cut costs, and better position itself in the prevailing challenging economic environment.
In the period, the group’s net income fell 4 percent to $57,2 million from $59,8 million the previous year.
The restructuring has, among other things, included the disposal of business considered non-core and staff retrenchment.
Group chief executive Mr Ronald Mutandagayi said the huge loss was mainly due to restructuring, completion of which is expected to better position the bank in the challenging market.
“The group’s outrun for 2014 carries a substantial burden of non-recurring costs as well as costs pegged at un- usually high levels of the ‘clean-up’ activities undertaken to strengthen future profit prospects,” the CEO said in a statement accompanying the group’s financials.
Retrenchment, which reduced bank employees from 1 042 to 936, cost $12,8 million, loan impairments $7,7 million and discontinued operations $1,2 million in the period.
Mr Mutandagayi said the bank was investing in agency banking which allows registered third parties to offer limited banking services to its customers. As at the end of the year, over 1 200 agents had been trained.
Mr Mutandagayi said the group spent $3 million on technology in the period to enhance its operations.
Group chairman Mr Tham Mpofu said the group was still in the process of merging its commercial banking arm and the building society.
“The transaction is still awaiting regulatory approval which is expected after certain pre-conditions are met,” he said.
He said ZBFH’s main subsidiary, ZB Bank, is still under United States sanctions, which is impacting on its ability to handle major transactions.
The group is also involved in insurance. — New Ziana.
Online Reporter