ZB Results: Net Income For Full Year 17 Up 36pct
ZB Financial Holdings on Thursday announced their Full year results ending 31 December 2017, the bank experienced a 35,7% increase in profit after tax to $15,51 million for the year ending December 31, 2017, from the $11,43 million realised in the same period in 2016.
Total income improved by 12% to $72,69 million during the period under review from 2016’s $65,07 million. The net profit margin was 21,34% showing the company was in a profitable position.
Non-funded income came in nine percent higher at $37,8 million largely driven by increased volumes in electronic banking products.
Chief executive Ron Mutangadayi told analysts that operating expenses increased by 3 percent to $50,94 million in the period due to higher gaining costs in banking and insurance operations, advertising and brand promotion expenses.
Funds invested in TBs grew by 31 percent from US$118,6 million as the banking group bought TBs worth US$105,69 million from the secondary market.
This comes at a time the loan to deposit ratio came down to 30 percent from 36 percent despite deposits growing by 26 percent to US$347 million.
The bulk of the non-funded income of US$41,5 million came from banking commissions, fees and other income. Fees and Commissions were up 9 percent to US$37,8 million.
Ron Mutandagayi said, however, that government had not defaulted on the Treasury Bills repayments and this was a safe bet.
The bank CEO said the group had mobilised a $10 million line of credit to finance its business, with another $20 million in the pipeline.
“Progress has been made in mobilising lines of credit. A facility of $10 million is awaiting disbursement whilst another facility of $20 million with a regional bank is at closing stage,” he said.
The group has budgeted $10 million to buy land over the next 4 years. So far, the group has acquired 708 stands in Plumtree and is finalising the acquisition of 678 stands in Kadoma.