LIVINGSTONE MARUFU
Listed financial services concern, ZB Financial Holdings (ZBFH) has embarked on a major restructuring exercise, which will result in a lean and agile entity as the group seeks to unlock value.
The restructuring exercise would be completed in the third quarter of the year, group CEO Shepherd Fungura said.
“As part of the transformation, the group has come up with new structures designed to remove silos in its operations, and is currently making new appointments in line with the new structure,” Fungura said.
“The programme is designed to transform the organisational design into a more people-centric one, and to enhance the customer journey in order to delight the group’s customers through a combination of digitalisation and service excellence.”
ZB has also converted 14 branches having been converted to service centres as at June 30, 2022.
In its financial results for the six months to June 30, 2022, ZB reported a 165% increase in profit to ZWL$6.069bn from ZWL$2.287bn attained in the prior comparative period.
Total income grew 147% to ZWL$20.877bn in the reviewed period from ZWL$8.446bn in 2021 owing to a 1 039% rise in other operating income, which rose to ZWL$11.148bn in June 2022 from ZWL$0.979bn in June 2021.
Commissions and fees also rose to ZWL$3.885bn in the period under review from ZWL$3.353bn in June 2021 , reflecting a 16% increase.
Interest income rose by 55%, to ZW$4.106bn in 2022 from ZW$2.649bn in 2021.
Fair value adjustments also contributed significantly, rising by 99% to ZWL$3.012bn in June 2022 from ZWL$1.513bn in June 2021.
Loan impairment charges rose by 207%, to ZWL$2.290bn in June 2022 from ZWL$0.747bn in June 2021.
Net insurance income increased by 45%, to ZWL$1.016bn in June 2022 from ZWL$0.698bn in June 2021, on the back of a 43% rise in gross premiums from ZWL$2.044bn in June 2021 to ZWL$2.933bn in June 2022.
Costs increased 58% increase to ZWL$9.413bn in the reviewed period from ZW$L5.970bn in June 2021, largely emanating from upward pressure on cost structures resulting from the inflationary environment.
Total assets grew 13% to ZWL$124.811bn as at June 30 2022 from ZWL$110.538bn as at December 31 2021.
Deposits and other related funding account balances grew marginally from to ZW$43.106bn as at 30 June 2022 ZWL$43.060bn as at December 31 2021.
Looking into the future, ZB’s strategic priority for the remaining months of 2022 is to continuously seek ways to preserve its capital from inflation-induced value erosion.
