- Total income rocketed by 75% to $70.542 billion
- ZB recorded a 391% upswing in net profit to $34.715 billion
- Total assets grew by 85% in real terms to $320.964 billion
Harare - ZB Financial Holdings delivered an astounding performance in 2022, registering a monumental upswing across its banking and insurance operations on the back of propitious macroeconomic conditions and tactical maneuvers by management.
Bolstered by the efflorescence of pivotal sectors like mining, construction and tourism, Zimbabwe’s economy blossomed by an estimated 4% as foreign exchange inflows swelled to an all-time high, greasing the wheels of commerce and industry. As the US dollar became ubiquitous, supplanting the hard-pressed local currency for most transactions, inflationary pressures abated progressively. Against this backdrop, ZB Financial Holdings was able to capitalise on opportunities to boost its lending activities and insurance underwriting, which translated into a meteoric rise in revenues and profits.
Total income rocketed by 75% to $70.542 billion, driven primarily by a 77% upturn in net interest income from lending activities as the loan book expanded briskly. Fees and commissions also ascended by 38% thanks to a proliferation of clients and higher transaction volumes stemming from the Group’s organisational transformation programme. Other operating income witnessed an even more dazzling improvement of 394% due to substantial foreign exchange trading gains and revaluation winnings from foreign-denominated balances. Share of associate companies’ profits skyrocketed by a whopping 1909% to buttress overall profitability.
These highly favourable variances culminated in a stellar 140% increase in profit from ordinary activities to $29.834 billion and a 391% upswing in net profit to $34.715 billion. Total equity swelled by 114% on the back of these superb results and appreciation gains on investment properties and equipment. Mirroring income trends, total assets grew by 85% in real terms to $320.964 billion, with earning assets expanding by 95% to comprise 61% of the total, evidencing burgeoning income generation potential.
The Group’s banking subsidiaries, ZB Bank and ZB Building Society, also delivered remarkable performances, leveraging the conducive macroeconomic environment to boost lending activities and profits. The insurance operations were likewise turned around, spurred by considerable gross premium growth which more than offset higher costs. The acquisition of a controlling stake in Mashonaland Holdings enabled strategic diversification of the asset base by increasing investment properties fivefold.
Liquidity remained well above regulatory thresholds, providing reassurance that the meteoric rise in assets and income did not compromise the Group’s financial soundness. The decision to acquire a Botswana-based reinsurance operation signals ZB Financial Holdings’ regional ambitions and aspiration to continue its spectacular growth trajectory. Overall, 2022 was an annus mirabilis for the Group, as it capitalised on Zimbabwe’s economic upturn and stability to transform its financial performance and reinforce its preeminence in the financial services sector. The outlook appears favourable for continued success in 2023 if the macroeconomic environment remains as propitious.
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