In compliance with the requirements of the Securities Act No.41 of 2016 of the Laws of Zambia and Listings Requirements of the Lusaka Securities Exchange, the Directors of Zanaco are pleased to announce the audited results for the period ended 31 December 2017.
The Bank continues to grow its revenue with an impressive 18.7% growth recorded on prior year. This is mainly attributed to:
- 26.5% growth in fees and commission income on the back of improved business growth in line with Banks strategy to grow non-funded income.
- 132% growth in investment income compared from K174 million in 2016 to K401 million in 2017. Investment securities balances grew substantially and were funded by the 19% growth in customer deposits.
Operational costs marginally increased by 5% during the year. This is lower than inflation due to improved cost control which resulted in Operating Profit before tax increasing from a loss of K60 million to a profit of K180 million.
During the period under review, the Bank remained capitalized above the minimum required ratio of 10%. The shareholders’ funds increased by 17.6% compared to December 2016.
The favorable economic conditions experienced towards the end of 2017 are expected to continue in 2018. Furthermore, the loan book challenges experienced in the industry will continue but the Bank is confident that with the approved strategy, the right measures taken and positive economic developments, the loan book shall start to grow again.
BY ORDER OF THE BOARD
Issued in Lusaka, Zambia on Wednesday, 14th March 2018
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First Issued on Wednesday, 14th March 2018