Business / Companies
ZB Financial Holdings reports an improved operating performance
22 Mar 2012 at 03:42hrs | Views
ZB Financial Holdings reported an improved operating performance for FY 2011, posting attributable earnings of $5.8 million against a loss of $1.1 million the prior period. The performance was underpinned by strong performances from the commercial banking arm and the mortgage business as well as recovery in the life insurance unit.
The 56.5% growth in total income was on the back of a 71.3% growth in funded income to make a 24.2% contribution to total income from 22.1%. The growth in non-funded income was driven by a strong growth in commission and fee income as the number of active accounts increased.
Total income was also enhanced by a $8.6 million fair value adjustment. The group cost to income ratio improved to 82% from 92% the prior period. Excluding the $2.6 million once off item relating to the final settlement of warranties and indemnities regarding recapitalization of former subsidiary, Intermarket Banking Corporation Zambia, costs were well contained.
The banking unit posted profits of $7 million, mortgage business $2.2 million, life $2.2 million and reinsurance $0.6 million on an underwriting profit of $0.9 million.
The balance sheet increased 37.3% y-o-y driven by the 46.4% and 53.7% growth in deposits and advances, respectively. The loan to deposit ratio improved to 79% from 66%. The loan loss provision ratio deteriorated to 3.7% from 1.6% given the tight liquidity conditions and generally low capacity utilisation, short-term debt servicing constraints remained a challenge. However, the loan loss provision ratio remained below 1% for the mortgage business.
The group is still on the United States Office Foreign Assets Control list of Specially Designated Nationals. Nonetheless, the group has managed to maintain a strong depositor base.
The 56.5% growth in total income was on the back of a 71.3% growth in funded income to make a 24.2% contribution to total income from 22.1%. The growth in non-funded income was driven by a strong growth in commission and fee income as the number of active accounts increased.
Total income was also enhanced by a $8.6 million fair value adjustment. The group cost to income ratio improved to 82% from 92% the prior period. Excluding the $2.6 million once off item relating to the final settlement of warranties and indemnities regarding recapitalization of former subsidiary, Intermarket Banking Corporation Zambia, costs were well contained.
The banking unit posted profits of $7 million, mortgage business $2.2 million, life $2.2 million and reinsurance $0.6 million on an underwriting profit of $0.9 million.
The balance sheet increased 37.3% y-o-y driven by the 46.4% and 53.7% growth in deposits and advances, respectively. The loan to deposit ratio improved to 79% from 66%. The loan loss provision ratio deteriorated to 3.7% from 1.6% given the tight liquidity conditions and generally low capacity utilisation, short-term debt servicing constraints remained a challenge. However, the loan loss provision ratio remained below 1% for the mortgage business.
The group is still on the United States Office Foreign Assets Control list of Specially Designated Nationals. Nonetheless, the group has managed to maintain a strong depositor base.
Source - Byo24News
