ZB FINANCIAL Holdings (ZB), says it is working fast to tie up the merger of its banking operations this year as part of its ongoing transformation.
The integrated financial services group commenced a restructuring exercise in 2021 to “unlock value”. “As of December 31, 2022, all group companies, with the exception of ZB Building Society, were in compliance with prescribed minimum capital requirements.
“The group is still working to consolidate all its banking operations under one licence, that is merging ZB Bank Limited, ZB Building Society and Intermarket Banking Corporation,” ZB chairperson Pamela Chiromo said in a statement accompanying the group’s financial results for the year ended December 31, 2022.
Shepherd Tapiwanashe Fungura
According to central bank statistics, ZB Building Society’s reported core capital as of December 31, 2022 was $11,1 billion and US$16,1 million. The prescribed minimum capital requirement for Tier-1 is the ZWL equivalent of US$30 million, while the threshold for Tier-II banking institutions, including building societies, is US$20 million.
For the period under review, the group recorded a 75 percent increase in total income from $40,3 billion in 2021 to $70,5 billion.
“This positive outturn was achieved on the back of a significant rise in trading income and fair value credits. Net interest income increased by 77 percent, from $11,35 billion in 2021 to $20,05 billion in 2022. “The growth in the loans and advances book underpinned the performance. Gross loan impairment charges to the income statement surged by 229 percent, from $2,136 billion in 2021 to $7,035 billion in 2022,” ZB chief executive Shephard Fungura said.
As a result, net income from lending activities registered a growth of 41 percent, from $9,22 billion in 2021 to $13 billion for the period under review.
“The group’s commissions and fees moved up by 38 percent from $11,6 billion in 2021 to $15,9 billion.
“The improvement in commissions was supported by growth in both the number of customers and volume of transactions as a result of the group’s organisational transformation programme journey,” Fungura added.
Other operating income improved by 394 percent from $4,5 billion in 2021 to $22,2 billion.
Other income is largely constituted by the realised foreign exchange gains from treasury trading activities and unrealised gains from the revaluation of the group’s foreign-denominated balances.
However, the group’s operating costs rose by 46 percent from $27,925 billion in 2021 to $40,708 billion in 2022, largely on account of the effects of inflation.