In compliance with the requirements of the Securities Act No.41 of 2016 of the Laws of Zambia and Listings Requirements of the Lusaka Securities Exchange, the Directors of Zanaco are pleased to announce the audited results for the year ended 31 December 2022
Financial Highlights
The Group continued with a strong performance ending the year with 18% growth in profit after tax. This performance has been anchored on stable revenue growth coupled with prudent cost management. Total operating income increased from K3,512 million to K3,901 million representing a growth of 11%. The increase in operating income was propelled by the increase in income earned on investment securities which grew from K1,459 million to K2,050 million representing a growth of 41%. Operating income was further boosted by 18% growth in fees and commission income.
Total operating expenses increased by 5% from K1,865 million to K1,964 million. The increase was driven by the Group’s business activities aimed at supporting the 2022 strategy coupled with inflationary increases. The Group continues to implement cost containment measures premised on prudent cost management.
The notable positive performance in the year was supported by a resilient balance sheet with a year on year growth in total assets of K37% (K9,747 million). The significant growth was mainly driven by increase in; cash and cash equivalent 72% (K1,991 million), Investment securities 66% (K5,075 million) and customer loans 26% (K2,490 million). The growth in assets was funded by the growth in customer deposits which grew by 54%, from K19,323 million to K29,689 million. This is in line with the Group’s strategy of growing deposits to increase funds available for investments. Total liabilities recorded a growth of 37% (K8,950 million) which is mainly attributable to the growth in customer deposits.
Capital
The Group continues to prudently build and manage its capital base to ensure that it remains adequately capitalized at all times and ensure maximum return on its investments. The Group closed the year with a capital ratio of 17.6% which is comfortably above the regulatory limit.
Future Outlook
The Group continues to be customer centric, innovative and remains committed to operate in a sustainable manner by protecting the environment in which we operate in. The Group in the current year adopted integrated reporting for the first time to demonstrate its commitment to provide all stakeholders with valuable information on how the Group generates value for its shareholders, key risks and strategic direction of the Group among others.
By Order of the Board
Kaluba G Kaulung’ombe-Inampasa
Company Secretary
Issued in Lusaka, Zambia on 07 March 2023
