FINANCIAL group, ZB Financial Holdings (ZBFH) has posted a 315% increase in profit after tax (PAT) to ZiG1,22 billion in the nine-month period ended September 30, 2024, owing to cost discipline and a resilient balance sheet.
Over the comparative period last year, ZBFH posted a PAT of ZWL$997 billion, which using the exchange rate of ZiG1:ZWL$2 500, converts to ZiG294 million.
In its third quarter trading update released yesterday, ZBFH said total income was ZiG1,83 billion year to date.
“The group produced a profit after tax of ZiG1,224 billion for the first nine months of 2024, driven by cost discipline and a resilient balance sheet structure. Total income was ZiG1,83 billion year to date. However, Q3 has seen a limited growth in income growth versus the prior quarter as a result of reduced growth in fair value credits and foreign exchange gains as well as harsh business conditions,” ZBFH said.
“The total income was supported by net interest income of ZiG282,540 million, driven by improved net interest margins, commission and fees of ZiG576,502 million supported by increase in electronic banking earnings, gross insurance premium of ZiG411,619 million driven by an increased sales of funeral cover products, net property income of ZiG66,434 million as rental income remained stable and other income of ZiG1,686 billion.”
The group reported that its operating costs amounted to nearly ZiG1,06 billion with a cost-to-income ratio of 57%.
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“The group maintained cost discipline despite inflationary pressures. Our customer base continues to grow across the balance sheet with a deposits balance of ZiG5,073 billion, up by 73% in Q3 from December 2023 and an insurance liabilities balance of ZiG497 million, a growth of 15% from Dec 2023,” ZBFH said.
“This was primarily driven by strong customer retention through proffering customer-centric products. On the other hand, total assets grew by 44% to ZiG12,638 billion anchored by growth in earning assets to ZiG10,401 billion from ZiG6,970 billion in December 2023.”
ZBFH also saw continued growth in its property portfolio through acquisitions and new developments.
“The group reported a strong capital position in the first nine months of the year with total equity of ZiG2,266 billion driven by the period’s performance,” ZBFH added.
The group noted that with Zimbabwe’s economy projected to grow by 2% this year, the operating environment would remain tight, hence authorities are expected to tighten it even further to control the money supply.
The idea is that by controlling money supply, the ZiG will manage to hold its value.
“The group remains committed to its digitalisation and transformation sprints, providing value-added financial solutions, capital preservation and effective cost management,” ZBFH said.