ZB upbeat
…..expects to get regulatory approval for its planned merger
STAFF WRITER
Listed financial services group, ZB Financial Holdings (ZBFH), is optimistic that it will soon receive regulatory approval for the consolidation of its commercial banking and building society licenses, Business Times can report.
The merger is a key component of the group’s strategy to streamline operations, enhance cost efficiency, and minimize regulatory compliance complexities.
Apparently, the company has already taken steps to integrate staff and operational functions across both entities in preparation for the anticipated approval.
“The group’s capital and liquidity levels remained strong with all business units being compliant with minimum regulatory capital requirements apart from ZB Building Society. The group expects to consolidate its banking operations into one banking license in the near future,” company secretary Tinashe Masiiwa said.
ZBFH has reported a significant increase in its financial performance with total income soaring to ZWG1.83bn in the nine months to September 30, 2024.
The total income was supported by net interest income of ZWG282.540m, driven by improved net interest margins, commission and fees of ZWG576.502m supported by increase in electronic banking earnings, gross insurance premium of ZWG411.619m driven by increased sales of funeral cover products, net property income of ZWG66.434m as rental income remained stable and other income of ZWG1.686bn.
Profit for the group stood at ZWG1.224bn in the first nine months of 2024, driven by cost discipline and a resilient balance sheet structure.
“The group produced a profit after tax of ZWG1.224bn for the first nine months of 2024, driven by cost discipline and a resilient balance sheet structure. Total income was ZWG1.83bn in the year to date.
However, Q3 has seen a limited growth in income growth versus the prior quarter as a result of reduced growth in fair value credits & foreign exchange gains as well as harsh business conditions,” Masiiwa said.
The group operating costs amounted to ZWG1.059bn with a cost-to-income ratio of 57%.
Masiiwa said ZBFH maintained cost discipline despite inflationary pressures.
The group customer base continues to grow across the balance sheet with a deposits balance of ZWG5.073bn, up by 73% in Q3 from Dec 2023 and an insurance liabilities balance of ZWG497m, a growth of 15% from Dec 2023 and this was primarily driven by strong customer retention through proffering customer centric products.
Total assets grew by 44% to ZWG12.638bn anchored by growth in earning assets to ZWG10.401bn from ZWG6.970bn in Dec 2023.
ZBFH also saw continued growth in the property portfolio through acquisitions and new developments.
