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 half year results for the period ended 30 June 2019.
Financial Highlights
The Bank has recorded 9% increase in total assets from K9,599 million in 2018 to K10,474 million in 2019 mainly attributed to growth in investment securities and loans and advances to customers. Investments securities have grown by 10% from 2018 whilst net customer lending also increased by 25% from K3,074 million in 2018 to K3,832 million in 2019. The increase in investment securities and loans to customers has been funded by the growth in customer deposits. Customer deposits increased to K8, 418 million from K7, 532 million representing a 12% increase. This was due to continued sales efforts and on-boarding of new clients.
Total income was broadly unchanged from K715 million in 2018 to K718 million in 2019. However, the profit after tax for the period has decreased to K68 million from K95 million in 2018 mainly on account of additional impairments taken in the year. The increase in impairments are driven by growth in the loan book of about 25% as well as the continued clean-up of the loan book to allow for allocation of capital to new revenue generating assets. Operational costs have remained flat year on year attributable to cost savings initiatives implemented by the Bank.
Capital
During the period up to 30 June 2019, the Bank remained well capitalized above the minimum required adequacy ratio of 10%.
Future Outlook
The Bank continues to evolve by implementing strategies that take advantage of market opportunities. This is through innovation and delivering a customer centric strategy which enhance value to investors and other stakeholders alike.
BY ORDER OF THE BOARD
