- Net profit soared by 165% to ZWL billion
- Total income increased 147% to ZWL 8 billion
- However, net income from lending activities fell by 5% from ZW$1.902 billion to ZW$1.817 billion
Harare- Financial services group, ZB Financial Holdings Limited has recorded a 165% increase in net profit to ZW$6.069 billion during the half year ended 30 June 2022 from ZW$2.287 billion attained in June 2021 during the same half.
The bullish profit surge was due to a massive growth in total income by 147% from ZW$8.446 billion in 2021 to ZW$20.877 billion during the period under review mainly underpinned by a 1 039% rise in operating income which rose from ZW$0.979 billion to ZW$11.1 billion in half year 2022.
The Group’s net interest income accelerated by 55% from ZW$2.649 billion to ZW$4.106 billion while the net insurance income increased by 45% from ZW$0.698 billion during the prior year to ZW$1.016 billion.
Growth in net insurance income was driven by gross premiums which increased by 43% from ZW$2.044bn in June 2021 to ZW$2.933bn in June 2022.
Net insurance income increased by 45% to ZW$1.016 billion from ZW$0.698 billion in June 2021 on the back of a 43% rise in gross premiums.
However, net income from lending activities fell by 5% from ZW$1.902 billion to ZW$1.817 billion in June 2022.
The Group’s reporting period coincided with the partial banning of lending by banks and hiking of bank policy rates to global record highs.
This was bad news for the banking sectors. Analysts estimated that billions of dollars were lost during the lending suspension period while soaring interest rates made borrowing expensive straining productive sectors and curtailing interest charges for banks.
Meanwhile, operating costs rose by 58% to ZW$9.413 billion in June 2022, largely emanating from upward pressure on cost structures resulting from the inflationary environment.
During the reporting period, the local currency recorded one of the worst performance, dropping by 33% in a single day.
“For the half year to 30 June 2022, the major issues in the domestic operating environment continued to be instability in the exchange rate regime and worsening inflation profile with the local currency depreciating by 237.1% against the USD from US$1: ZW$108.67 on 1 January 2022 to US$1: ZW$366.27 on 30 June 2022,” the Group’s chairperson P Chiromo said in a statement accompanying the half year financials.
On subsidiary performance, ZB Bank Limited’s profit after tax improved by 249% from ZW$1.474 billion in 2021 to ZW$5.148 billion while ZB Building Society recorded a profit after tax of ZW$1.037 billion from ZW$191.8 million.
On insurance operations, ZB Reinsurance’s profit after tax surged to ZW$990.70 million from ZW$277.6 million while ZB Life sector recorded an increase in profit after tax from ZW$599.20 million in June 2021 to ZW$1.285bn for the period ending 30 June 2022.
“The company maintained good relations with its cedants and retrocession partners during the period.”
The Group said the expansion into the Botswana market is at an advanced stage, after commencing operations in June 2022.
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