ZB revenue slumps

FINANCAIL services group, ZB Financial Holdings, says revenues for the half year ended June 30, 2021 declined by 29,8%, tracking a slowdown in the “other income” part of its takings.

Chief executive Shepherd Fungura said the Zimbabwe Stock Exchange listed group’s revenue slumped to $2,8 billion during the period under review from $4,128 billion during the comparable period in 2020.

“The group recorded a 29,8% decline in total income from $4,128 billion for the period to June 2020 to $2,897 billion for the comparable period to 30 June 2021,” Fungura said.

“The decline in revenue performance was mainly underpinned by a 67% decrease in fair value credits, from $1,571 billion in 2020 to $0,519 billion in 2021 and an 80% decline in other operating income from $1,706 billion in 2020 to $0,336 billion in 2021.”

He revealed that operating costs ballooned by 73,5% to $2,048 billion, from $1,180 billion in 2020.

ZB posted a $785 million net profit during the period, compared to $2,320 during the same period last year.

This represents a 66,2% decline.

Fungura said the firm’s flagship ZB Bank posted a profit of $506 million, representing a 66,4% decline from $1,504 billion during the corresponding period last year.

The bank’s total assets stood at $19,769 billion as at June 30 2021, from $15 billion as at December 31 2020.

He said ZB Building Society posted a profit of $66 million during the review period, 73% down from $243 million in 2020.

The building society’s total assets stood at $1,639 billion as at 30 June 2021, from $1,35 billion as at December 31 2020.

“The group, through its investment banking unit, ZB Capital (Private) Limited, continues to offer fund-raising and advisory services to a wide range of partners, including but not limited to government, State-owned enterprises and the private sector,” he said.

The group is forging ahead with the digitalisation agenda in order to enhance its operational efficiency, he noted.

Net interest income for the group rose by 148,6% to $909 million from $366 million in 2020, while banking commissions and fees also rose in real terms by 115,6% to $1,1 billion, from $533 million in 2020.

“The group will continue to be cautiously optimistic and stands ready to support and partner with the government in initiatives to resuscitate the economy, including inter alia sustainable infrastructure development, retooling and capacitating the productive sectors and promoting financial inclusion,” ZB said.