ZANACO | Revised Trading Statement and Restatement of Financial Information

March 14, 2018|

Further to the trading statement released on SENS on 24 August 2017, and in accordance with the Lusaka Securities Exchange (“LuSE”) Listings Requirements, the Board of Directors of Zambia National Commercial Bank (“the Board”) hereby advises the market and shareholders of the Bank (“shareholders”) that certain International Accounting Standard (“IAS”) compliance disclosures have now been brought to the Board’s attention, which in the first instance, demands:

(a) A restatement of the Bank’s audited results for the year ended 31 December 2016 (“2016 Audited Results”)

In 2017, the Bank undertook a review of its provisioning levels relating to Loans and Advances in preparation for the implementation of IFRS 9 and determined that the provision for impairment of Non-Performing Loans (“NPLs”) as at 31 December 2016 necessitated a further provision.

The Board resolved to restate the 2016 Audited Results to fully comply with accounting treatment of the provision for impairment of NPLs. The revised accounting treatment of the provision for impairment of NPLs will now be applied to the Audited Results, requiring a revised trading statement, as the trading statement released on SENS on 24 August 2017 did not take into account the revised accounting treatment.

Restated Trading Statement
After applying the revised accounting requirements set out above, the Bank’s loss per share (“EPS”) for the year ended 31 December 2016 will be approximately ZMW (0.043) per share.

The Bank’s EPS for the year ended 31 December 2017 is ZMW 0.079 per share, reflecting an increase of approximately 285% in comparison to the revised 2016 Audited Results.

The Bank expects its revised results for the year ended 31 December 2016 to be released on SENS on or about 14 March 2018. Accordingly, shareholders are advised to exercise caution when dealing in the Bank’s Securities until publication of the revised results.

Issued in Lusaka, Zambia on Tuesday, 13th March 2018

Lusaka Securities Exchange Sponsoring Broker
T | +260-211-232456
E | [email protected]
W | www.sbz.com.zm
Stockbrokers Zambia Limited (SBZ) is a founder member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia

First Issued on Tuesday, 13th March 2018

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Zambia National Commercial Bank, commonly known as Zanaco, listed on the Lusaka Securities Exchange, serves retail customers, large corporations, agri-business and public sector clients. With the aid of Rabobank, a Dutch multinational banking and financial services company, providing management services and technical assistance, Zanaco is now one of the most solidly capitalised banks in Zambia.

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