ZB Financial Holdings on Thursday reported a 36 percent rise in net income to $15,51 million for the full year to December, 2017 from $11,43 million in the previous year on increased income.

Total income increased by 12 percent to $72,69 million from $65,07 million in the previous year driven by non-funded income. Non-funded income came in nine percent higher at $37,8 million largely driven by increased volumes in electronic banking products.

However, interest income shrunk from $27,59 million in the previous year to $24,8 million, mainly due to central bank’s directive to cap interest rates.

Chief executive Ron Mutandagayi told analysts that operating expenses increased by 3 percent to $50,94 million in the period due to higher acquisition costs in banking and insurance operations, advertising and brand promotion expenses.

On the life insurance business, gross premiums increased by 9 percent to $11,7 million from $10,72 million on increased product penetration driven by the recruitment of more agency.

Total assets increased to $$527,09 million from $439,29 million previously, as the group increased its treasury bills (TBs) holdings to $155,95 million from $118,64 million in the previous year.

Loans also increased to $104,97 million from $99,19 million in the previous year.

Despite an increase in loans, non performing loans decreased to 11 percent from 23 percent in the prior year on good credit risk assessment, Ronald said.

Deposits increased to $347,1 million in the period, from $275,27 million previously.

Additionally, the bank’s liquidity ratio and capital ratio stood at 77 percent and 19 percent from 75 percent and 20 percent respectively.

Mutandagayi said the group had mobilised a $10 million line of credit to finance its business, with another $20 million in the pipeline.

“Progress has been made in mobilising lines of credit. A facility of $10 million is awaiting disbursement whilst another facility of $20 million with a regional bank is at closing stage,” he said.

The group has budgeted $10 million to buy land over the next 4 years. So far, the group has acquired 708 stands in Plumtree and is finalising the acquisition of 678 stands in Kadoma.