Business Reporter
ZB Financial Holdings Limited’s transformation, which started in early 2022, has helped the group achieve growth and profitability.
In a statement accompanying financial results for the year ended December 31, 2022, the group’s chairperson, Mrs Pamela Chiromo, said focus will continue to be on revenue growth and cost optimisation strategies.
“The group will continue with its organisational transformation programme, focusing more on improving the effectiveness and efficiencies of back-end systems,” said Mrs Chiromo.
ZBFH’s transformation programme entails reviewing its business model and organisational design.
It also involves repurposing bank branches into group-wide customer service centres to enhance client convenience.
“As at the end of December 2022, a total of 25 branches had been renovated and converted into customer service centres. The remaining 20 will be done in 2023,” said ZBFH chief executive officer Mr Shepherd Fungura.
For the year under review, the group’s total income grew by 75 percent to $70,5 billion, compared to $40,3 billion a year earlier, largely driven by a significant rise in trading income and fair value credits.
Net interest income increased by 77 percent, from $11,4 billion in 2021 to $20,1 billion in 2022, underpinned by the growth in loans and advances.
“As a result, net income from lending activities registered a growth of 41 percent from $9,2 billion in 2021 to $13,01 billion in 2022,” added Mr Fungura.
The group’s commissions and fees moved up 38 percent to $15,9 billion from $11,6 billion in 2021, supported by growth in both the number of customers and volume of transactions as a result of the group’s organisational transformation programme.
Other operating income improved by 394 percent, from $4,5 billion in 2021 to $22,2 billion, driven by realised foreign exchange gains from treasury trading activities and unrealised gains from revaluation of the group’s foreign-denominated balances.
“Profit from ordinary activities improved by 140 percent to $29,8 billion from $12,4 billion in 2021 and the performance was also enhanced by a 1 909 percent rise in share of associate companies’ profit net of tax, from $0,26 billion in 2021 to $5,4 billion in 2022,” said Mr Fungura.
During the year under review, total assets for the group increased by 85 percent in real terms to close the year at $321 billion.
Rebalancing of the asset mix was undertaken during the year through acquisition of Mashonaland Holdings, which saw a 516 percent increase in investment properties.
Deposits and other related funding account balances grew by 62 percent to $109,21 billion from $67,61 billion as at December 31, 2021.
On operations, ZB Bank Limited posted a profit after tax of $14,5 billion in 2022 compared to $6,4 billion in 2021.
The bank’s total assets stood at $200,4 billion from $127,29 billion a year ago.
ZB Building Society posted a net profit of $4,5 billion compared to $2,8 billion in 2021.
In terms of the group’s insurance operations, ZB Reinsurance posted a profit after tax of $1,95 billion in 2022 compared to $1,53 billion in 2021.
Similarly, ZB Life Assurance posted a profit of $2,3 billion in 2022, compared to a loss of $0,09 billion in 2021.
Mr Fungura said the group has adopted a regional expansion strategy.
In November last year, it successfully launched reinsurance operations in Botswana.
During the year, the group acquired additional equity interest in Mashonaland Holdings Limited and achieved a shareholding of above 50 percent.