eBusiness Weekly
Tawanda Musarurwa
Diversified financial services firm, ZB Financial Holdings’ revenue for the nine months to September 30, 2019 jumped a significant 294 percent to $234,1 million from prior year comparative, but this was largely on the back of contribution from fair value credits and exchange gains from the revaluation of its foreign exchange position.
Non-funded income contributed 86 percent of total revenue, while net interest income contributed 14 percent.
“The low net interest income contribution to total income was a result of constrained lending activities,” said management.
During the period under review, the group’s operating expenses increased by 109 percent from $41,7 million for the nine months ended 30 September 2018 to $86,9 million for the nine months ended 30 September 2019.
“This cost outturn is below inflation principally because increases in salaries and wages have lagged behind year on year inflation, last reported as 175,66 percent as at 30 June 2019,” explained management.
ZBFH posted a profit after provisional taxation of $125,3 million for the 9 months ended September 30, 2019, representing a massive 806 percent increase from $13,8 million posted in the prior comparable period.
The group’s total asset base grew by 128 percent to $1,514 billion as at 30 September 2019, was 128 percent from the closing balance for the prior year ($663,2 million as at 31 December 2018).
Total earning assets were at $829,5 million, an 83 percent increase over the same period.
The board did not declare a dividend for the period.
Going forward, and in view of the prevailing economic climate, ZBFH says it will “continue to focus on capital preservation and manage cost expansion against revenue growth in order to secure the sustainability of operations in the future.”
