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 unaudited results for the period ended 30 June 2024.
Financial Highlights
The Group recorded a profit after tax of K706 million for the period, a 2% reduction compared to the 2023 performance. The performance in the period was adversely impacted by the increase in interest expense cost due to increased borrowings to cushion the effects of the increase in statutory reserve ratio from 11.5% to 26% which materially reduced available cashflows to support operations.
Total operating income closed the period at K2.77 billion representing a marginal growth of 1%. This was supported by a 4% (K64.8m) growth in Net Interest Income and 18% (K82.2m) increase in fee and commission income.
Operating expenses grew by 10% (K150m). The Group continues to focus on investments that will maximize shareholder value and position the Bank to be future-fit. Impairments reduced by 79% (K86.2m) due to careful and forward-looking credit management practices. Cost containment remains pivotal in the Group’s operations to ensure that it prudently manages its resources.
The performance in the period was anchored on a resilient balance sheet with a growth in total asset base of 24% (K9.1 billion). This was supported by 29% (K3.5 billion) growth in the loan book, 10% (K1.1 billion) growth in Investment securities. Cash and balances with Central bank grew by 25% (K1.8 billion) to ensure compliance with the increase in the statutory reserve ratio. Total liabilities grew by 23% (K7.9 billion) driven by a 7% (K1.98 billion) increase in customer deposits and 435% (K5.4 billion) growth in borrowings from other Banks to support and maintain funding and liquidity requirements at all times.
Capital
The Group remains adequately capitalized and continues to prudently utilize its capital to ensure maximum return on investments. As at 30 June 2024, the Group retained a strong capital ratio of 18.18%, after a dividend payout of K621 million.
Future Outlook
The Group will continue to operate in an agile manner to respond proactively to the changing business, environment and regulatory environment. We will continue to invest in technology and enhancing our customers’ experience in order to remain future-fit with a focus on the customer.
By Order of the Board
KALUBA G KAULUNG’OMBE-INAMPASA
COMPANY SECRETARY
Issued in Lusaka, Zambia on 18 September 2024
Related Download
Zanaco Plc – Summarised Unaudited Results For The Period Ended 30 June 2024.pdf
