- ZB Financials achieved staggering 796% income growth in first half of 2023
- Strong performance in banking segment helped to anchor ZB Bank Group's Earnings
- ZB Financials transformation program and expansion strategy is set to fuel phenomenal growth
Harare- ZB Financial Holdings, a leading financial institution doubled its total income in the first half of 2023, increasing by 796% to ZWL917.284 billion compared to ZWL102.407 billion in the same period last year. This substantial growth translated into a profit after tax (PAT) of ZWL678.459 billion, marking a significant improvement of 2179% from the previous year.
The impressive financial results were driven by the growth across the Group's subsidiaries, including the flagship ZB Bank and other units. ZB Bank Limited witnessed substantial growth from ZWL25.251 billion in 2022, while ZB Building Society's total assets also rose to ZWL132.002 billion from ZWL5.089 billion in the previous year.
The insurance segment of the Group demonstrated strong performance, with net insurance-related earnings increasing by 210% to ZWL15.450 billion in 2023. This growth was primarily fuelled by a 223% rise in gross premiums, reaching ZWL46.495 billion. However, there was also a notable 230% increase in insurance-related expenses, amounting to ZWL31.045 billion.
The Group experienced a remarkable 726% rise in the share of associate companies' profit, resulting in a net monetary gain of ZWL4.745 billion, compared to a net monetary loss in the previous year.
As part of its expansion strategy, ZB Financial Holdings launched reinsurance operations in Botswana in November 2022, contributing 15% to ZB Reinsurance's Gross Written Premiums (GWP).
Despite a 1% decrease in loan impairment charges to ZWL11.132 billion, the net income from lending activities improved by 262% to ZWL32.274 billion in 2023. Deposits and other related funding account balances also grew by 152% to reach ZWL858.623 billion.
Operating costs increased substantially by 315% to ZWL191.725 billion, largely influenced by inflation. However, profit from ordinary activities experienced an extraordinary surge of 1190%, reaching ZWL725.559 billion in 2023 compared to ZWL56.237 billion in the previous year.
Consequently, the Group's total assets witnessed a substantial increase of 153% from ZWL1.003 trillion to ZWL2.539 trillion.
In addition to its financial achievements, the Group has undergone an organisational transformation program aimed at adopting a customer-centric business model and organizational design. This transformation has been supported by digital capacity building initiatives.
The Group has repurposed 25 bank branches into customer service centers under the #OneZB concept, offering a wide range of banking, insurance, and investment services. Additional customer service centres are planned to be launched in the second half of 2023, with dedicated premium service centres already established in Harare and Bulawayo.
The Group is also working towards attaining certification under the Sustainability Standards Certification Initiative (SSCI) by the European Organisation for Sustainable Development (EOSD), with guidance from the Reserve Bank of Zimbabwe (RBZ). This initiative aims to ensure the Group operates in a sustainable manner.
Looking ahead, ZB Financial Holdings holds its focus on developing strategic business partnerships, enhancing sustainable revenue streams, and capitalizing on investment opportunities to maintain its capital position. The Group aims to consolidate its one-stop-shop service centres as a market differentiator and prioritize prudent investment and cost containment measures in the short term to boost profitability.
In the medium to long term, it aims to continue its digitalisation journey, implementing state-of-the-art systems to provide efficient products and convenience to customers. These strategies are aimed at maintaining the Group's market position, driving growth, and delivering value in an ever-evolving financial landscape.
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