BUSINESS REPORTER
Listed financial services group, ZB Financial Holdings’ (ZBFH) profit after tax increased by close to 400% to ZWL$35bn in 2022 from ZWL$7bn in the previous year due to the increase in trade volumes.
In a statement accompanying the 2022 results, ZB chief executive officer Shepherd Fungura (pictured) said the group recorded a 75% increase in total income to ZWL$70.542bn in 2022 from ZWL$40.343bn in 2021.
“Net profit registered a 391% increase, from ZW$7.074bn attained in 2021 to ZW$34.715bn in 2022,” Fungura said.
This was achieved on the back of a significant rise in trading income and fair value credits.
Net interest income increased by 77% to ZW$20.050bn in 2022 from ZW$11.359bn in 2021, underpinned by the growth in the loans and advances book.
Gross loan impairment charges to the income statement surged by 229% to ZW$7.035bn in 2022 from ZW$2.136bn in 2021.
As a result, net income from lending activities registered a growth of 41%, to ZW$13.015bn in 2022 from ZW$9.224bn in 2021.
The group’s commissions and fees moved up by 38% to ZW$15.910bn in 2022 from ZW$11.570bn in 2021.
The improvement in commissions was supported by growth in both the number of customers and the volume of transactions as a result of the group’s organisational transformation programme journey.
Other operating income improved by 394% to ZWL$22.237bn from ZWL$ 4.500bn in 2021.
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.
Fair value adjustments moved from ZWL$12.195bn in 2021 to ZWL$15.492bn, as a result of higher fair value gains from investment properties.
Net insurance-related earnings increased by 36% to ZWL$3.889bn in 2022 from ZWL$2.854bn in 2021, on the back of a 120% rise in gross premiums from ZWL$6.814bn in 2021 to ZWL$15.014bn in 2022, which was partially offset by a rise in insurance related expenses by 181% from ZWL$3.960bn in 2021 to ZWL$11.125bn in 2022.
Operating costs rose by 46% to ZWL$40.708bn in 2022 from ZWL$27.925bn in 2021, largely on account of the effects of inflation.
Profit from ordinary activities more than doubled to ZWL$29.834bn in 2022 from ZWL$12.418bn in 2021.
Performance was also enhanced by a 1 909% rise in the share of associate companies’ profit net of tax, to ZWL$5.395bn in 2022 from ZWL$0.269bn in 2021.
Total assets for the group increased by 85% in real terms, to close the year 2022 at ZWL$320.964bn.
A rebalancing of the asset mix was undertaken during the year through the acquisition of Mashonaland Holdings, which saw a 516% increase in investment properties.
Deposits and other related funding account balances grew by 62%, from ZWL$67.616bn as at December 31 2021 to ZWL$109.210bn as at December 31, 2022.
Earning assets increased by 95% to close the year 2022 at ZWL$194.232bn from ZWL$99.353bn as at December 31 2021, while constituting 61% of total assets (57% at December 31 2021).
The group maintained a comfortable liquidity margin of safety, with the ratio of liquid assets to customer deposits being above 60% throughout the year against a prescribed ratio of 30%.
The group’s total equity increased by 114%, from ZWL$69.189bn as at December 31 2021 to ZWL$148.370bn as at December 31, 2022, underpinned by the positive performance outturn for the year, as well as gains on the revaluation of properties and equipment.
