BUSINESS REPORTER
ZB Financial Holdings Limited says its inflation-adjusted revenue for the nine months ending September 30, 2022 rose by 97% to ZWL$51.375bn from the same period last year on the back of an improvement in interest and non-funded incomes.
Net interest and trading income was up 41% in the period under review to ZWL$12.406 billion, supported by loan book growth and the margin benefit of rising interest rates, company secretary Tinashe Masiiwa said in a trading update for the third quarter.
“For the quarter, an average annual interest margin of 35.55% was attained, up from
Q3FY21’s annual average margin of 26,16%. However, the increase reflects only a partial offset against inflation,” Masiiwa said.
Non-interest income rose by 127% to ZW$43.031billion year-on-year and was mainly composed of insurance premiums, fair value, foreign exchange gains and commissions.
Net insurance premium increased by 44% in Q3 FY22 compared to Q3FY21, supported by the underwriting of new business and improvement in risk selection, Masiiwa said.
“Banking commission income grew by 12% and was supported by improving transaction banking volumes.
However, for the better part of 2022, the earning rates were at similar levels to the base recorded in the prior year,” he said. Non-tradingincome jumped by 263%, underpinned by 1600% increase in foreign exchange income driven by the substantial depreciation in the official exchange rate as policymakers attempted to stabilise the market.
Operating costs of ZWL$22.995bn, up 41% compared to the nine months of 2021, in part due to costs associated with business transformation costs coupled with inflationary cost pressures.
The annualised cost-to-income ratio for the nine months to September 30 was 77%, and it was, in line with the prior year, against increased cost commitments, reflecting effective cost containment measures.
Total assets increased by 16% from ZWL$161.390bn at the end of 2021 to ZWL$186.453bn billion as at September 30, 2022, of which 60% (31 December 2021: 62%) of total assets were interest-earning assets. The group kept its overall liquidity ratio over 60% versus a benchmark ratio of 30%, Masiiwa said.
