Zanaco Plc Summarised unuaudited results for the period ended 30 June 2021

September 27, 2021|

Zambia National Commercial Bank Plc ( HY2021 Interim Report

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 unaudited results for the period ended 30 June 2021

Financial Highlights

The Group delivered a very strong first half year financial performance with a profit after tax of K 393 million compared to K62 million in the same period in 2020. This represents an increase of K331 million largely reflecting the significant growth in total operating income. Total operating income increased by 78% to K1,752 million compared to K982 million in 2020. The growth in total operating income is as a result of the increase in interest income arising from investment securities and customer loans. The significant investment in securities and customer loans has been funded by the growth in customer deposits.

Total operating expenses increased by K243 million to K1,051 million compared to K808 million in the prior year. Operating expenses have increased mainly on account of increased business activity as well as the Group’s continued investment in transformation programs aimed at aligning its operations with the strategic intent.

Total assets were K12,037 million higher at K25,601 million compared to K13,564 million in the prior year. This is supported by growth in the loan book of K5,300 million from K4,761 million in 2020 to K10,061 million at 30 June 2021. Investment in securities also increased by 78% from K3,905 million in 2020 to K6,952 million supported by growth in customer deposits.

Total liabilities increased by K11,468 million from K12,651 million in 2020 to K24,118 million at 30 June 2021. This increase is mainly on account of 64% growth in customer deposits from K10,919 million in 2020 to K17,901 million, reflecting the Group’s drive to grow liabilities in an effort to maintain strong funding and liquidity. Borrowings have also increased from K278 million to K3,219 million at 30 June 2021 in order to provide foreign currency liquidity to fund various structured facilities.


The Group continues to prudently utilize its capital to ensure maximum return on investments. As at 30 June 2021, the Group retained a strong capital ratio of 13.2%, after a dividend payout of K82 million.

Future Outlook

The Group has seen good business growth in areas of strategic focus and continues to deliver on its strategic ambitions. The Group has been operationally resilient throughout the Covid-19 outbreak and remains cautiously optimistic in the remainder of 2021. As the Covid-19 pandemic new waves continue to intensify, the Group is piloting new ways of working including increasing flexibility for all of its employees, while being mindful of the customers’ evolving needs.

By Order of the Board


Issued in Lusaka, Zambia on Wednesday,15 September 2021

Zanaco Plc 2021 Interim financial results.pdf


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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. The bank has evolved into a leading financial institution in Zambia. With the aid of Arise B.V., a leading African Investment Company, Zanaco benefits from technical assistance, international networks and best practices in various areas of banking.

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