ZB reports 22pc profit
FINANCIAL services group, ZB Financial Holdings reported a 22 percent increase in profit to $11,43 million for the year ended December 31, 2016 on the back of robust bad debt recoveries, growth in non-funded income and positive fair value performance in listed equities.
Revenue for the period under review amounted to $65,07 million representing a 12 percent increase from same period in 2015.
Group chief executive Mr Ron Mutandagayi: “Total income increased at a faster pace relative to operating expenditure.”
The banking unit contributed $9,76 million to profit while ZB Life achieved $0,04 million.
In the period under review, ZBFH’s total assets increased by 5 percent to $493 million on a 15 percent increase in Treasury Bills held.
Loans and advances remained almost fl at at $99 million on a guarded approach to credit expansion.
But total deposits rose 2 percent to $275 from prior year’s $269 million on the back of increase in accounts.
“These balances are however sensitive to short term market dynamics,” said Mr Mutandagayi.
Cash and cash equivalents increased 41 percent to $78,6 million as the group adopted a cautious approach on asset placements in view of the transient nature of underlying funding.
Aggregate l iquidity ratio was maintained at more than 70 percent throughout the year.
Life assurance funds increased by 2 percent from $27,8 million in 2015 to $28,3 million in 2016 which was reflective of a combination of an increase in the underlying business as well as the performance of supporting assets.
Net underwriting income rose 4 percent to $8,80 million, short term gross premiums dropped by 8 percent due to portfolio realignment while premiums increased 6 percent on increased business.
As at December 31, 2016, all ZBFH’s subsidiaries, with the exception of ZB Building Society had met their minimum capital requirements in line with the Reserve Bank of Zimbabwe’s regulations.
In the outlook period, Mr Mutandagayi said removal of the fi nancial institution from the sanctions list was a welcome development that would open it to new international business.