Financial Highlights
The Group’s performance continued on a strong growth trajectory. Total operating income increased by 54% from K1,543 million in 2019 to K2,373 million in 2020 primarily due to increase in trading income and interest income from loans and advances. Trading income grew by 133% compared to prior year on account of increased volumes of transactions as well as an improved product mix offering. Interest income from loans and advances increased by 53% from 2019. This is reflective of the growth in the loan book which grew by 52% from K4,817 million in 2019 to K7,328 million in 2020. Operational costs were adversely impacted by the depreciation of the kwacha and inflationary changes which resulted in an increase of 33% compared to prior year. The Group continued to invest in its strategic initiatives which saw an increase in transformation costs from K52 million in the prior year to K209 million.
The Group achieved strong balance sheet growth with total assets at K19,340 million, a growth of 63% from prior year. Customer deposits grew to K15,698 million from K9,848 million representing a 59% increase. This is in line with the Group’s strategy of aggressively growing deposits necessary to increase funds available for investments. The credit risk processes continued to be improved whilst carefully growing the loan book to support our customers.
Capital
The Group has continued to build a strong capital position, ending the year with capital adequacy ratio of 13.5%. The capital position is actively managed to support business strategy and meet regulatory requirements at all times.
Future Outlook
The effects of the coronavirus on the economy and society continue to pose the largest threat to the future performance of the Group. The Group will continue to operate in an agile manner to respond proactively to the effects of the pandemic, while protecting its customers. We will continue to invest in enhancing our customers’ experience and restructuring operations to increase long-term efficiency and sustainability.
By Order of the Board
KALUBA G KAULUNG’OMBE-INAMPASA
COMPANY SECRETARY
Issued in Lusaka, Zambia on Wednesday, 10th March, 2021
Zanaco – 2020 Abridged Financial Statements.pdf
Zanaco – 2020 Annual Report.pdf
Zanaco – Notice and Agenda of 2021 AGM (Full version).pdf
