ZBFH lays off nearly 100 workers
BUSINESS REPORTER
Listed financial services group, ZB Financial Holdings Limited (ZBFH), has laid off nearly 100 employees in a huge cost cutting drive, Business can report.
ZBFH Group CEO, Shepherd Fungura confirmed that roles were axed from the group’s workforce.
He explained that ZBFH intended to increase returns, enhance profitability, and provide better service as part of its strategy.
“As the new group structure settled, the group adopted a voluntary disengagement scheme [VDS] which was taken up by 62 staff members, mostly those who were nearing retirement. However, some staff members could not be accommodated within the new organisational design, thus necessitating a compulsory disengagement scheme [CDS] which saw 36 staff members being disengaged.
The group staff complement as at June 30 2024 stood at 995. Industrial relations remained cordial during the period under review,” Fungura said.
In its financial results for the half year to June 30, 2024, ZBFH reported a 61% decline in profit after tax to ZWG1.06bn, from ZWG2.725bn in the prior comparative period.
Total income decreased by 41% to ZWG1.276bn in the period under review from ZWG2.176bn reported in the prior comparative period.
This was on the back of a significant decline in fair value adjustments which decreased by 95%, from ZWG1.855bn in 2023 to ZWG95.6m in 2024.
Other income recorded a decrease of 31%, from ZWG1.255bn in 2023 to ZWG861.777m and largely constituted by foreign currency dealings revenue which also declined by 26% from ZWG1.099bn in June 2023 to ZWG811.067m in June 2024.
Commissions and fees increased by 28% from ZWG275.324m in 2023 to ZWG353.007m, driven by the successful execution of digital transformation strategy and a deliberate shift towards more sustainable revenue streams.
“Net interest income rose by 20%, from ZWG174.949m in 2023 to ZWG209.978m in 2024. Net expected credit losses decreased 75%, from ZWG36.253m in 2023 to ZWG9.206m in 2024 due to recoveries made during the period under review.
