ZB Financial Holdings Posts $21 Million Profit
ZB Financial Holdings has achieving a profit of $21.8 million in 2018 against a restated profit of $14.2 million in 2017.
In a speaking at the briefing of the 2018 End of Year Results audited financial results, Group Chief Executive, Mr Ron Mutandagayi, said “In spite of the aforementioned challenges, the Group posted nominal growth, achieving a profit of $21.8 million in 2018 against a restated profit of $14.2 million in 2017.”
The chief executive highlighted that the continued shortage and suboptimal distribution of foreign currency which slowed down productivity in the business sector and led to the accumulation of foreign liabilities for many companies and the shortage of the local surrogate currency, the bond note, which, besides promoting a wholesale shift from cash-based local settlement options to mobile and card based platforms, created settlement arbitrage opportunities.
Net revenue improved by 21%, from $69 million in 2017 to $83.5m in 2018. This was underpinned by improved performance in net income from lending activities, net insurance premium income as well as fair value credits on the investment portfolio.
Net income from lending and trading activities recorded a 29.1% improvement, from $14.8 million in 2017, to $19.1 million in 2018.
Treasury bills pay interest rates of between five and 10 percent while the RBZ’s savings bond pays interest rates of seven percent.
Total assets for the Group increased by 26.2%, from $525.7 million in 2017 to $663.2 million underpinned by growth in money market investments (206% from $3.5 million in 2017 to $10.7 million in 2018), investment securities (53.9% from $36.7 million in 2017 to $56.5 million in 2018), mortgages and other advances (16.1% from $105 million to $121.9 million), and sovereign paper holdings (24.6% from $156 million in 2017 to $194.3 million in 2018).