Thursday, March 28, 2024

ZANACO in K156 billion profit in 2012

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Zambia’s largest bank by branch network, ZANACO recorded a 29 percent jump in profit after tax in 2012 standing at K156 billion from 121 billion recorded in 2011.

The bank owned by Dutch banking giants Rabobank, the Zambian government and Zambia National Farmers Union also saw an improved balance sheet in 2012 with total assets rising by 23 percent to stand at 5,812,000.

Its total deposits in 2012 stood at 4,315,000, up by 26 percent.

And commenting on the financial results, ZANACO Managing Director Martyn Schousten said 2012 was an exceptional year as the bank’s performance far exceeded public expectations.

Mr. Schousten says increased customer base and improved credit underwriting drove the banks strong performance in 2012 resulting in a profit after tax jumping from K121 billion in 2011 to K156 billion in 2012.

“We by far outdid ourselves last year, we are number one in customer base currently standing at 645,000 and we are number in profitability and we are number in lending. Last year we gave out US$ 1,103 million in loans and we are enjoying 17 percent market share of the entire industry lending book,” Mr. Schousten said.

ZANACO also targets to increase the number of its active customers to 1 million by 2015 boosted by expansions to its branch network and technological innovations.

“We are currently present in 74 of the 102 districts, before the new districts came on stream, we were present countrywide and we are using our SME agents, ZANACO Xpress locations at ZAMPOST in order to spread our reach,” he said.

And Mr. Schousten says the bank will prioritize improved customer service by cutting the number of minutes customers spend in the branch to a maximum of 15 minutes.

He said 50 members of staff were trained in advanced customer service in 2012 and a further 38 were completed their training in the first quarter of 2013.

Mr. Schousten said ZANACO has introduced extended banking hours at selected branches as a way of decongesting branches and improving customer care.

Meanwhile, Mr. Schousten says the bank is not aware of any further action following the conclusion of the work of the commission of inquiry on the partial privatization of ZANACO to Rabobank.

President Sata’s first action as Head of State was to set up a commission of inquiry headed by former Justice Minister Sebastian Zulu to probe the sale of 49 percent shares of ZANACO to Rabobank, a move he believed was fraudulent.

The full ZANACO report has however never been presented to President Sata nor its contents made public.

But Mr Schousten said Rabobank is confident that its investment in ZANACO is still safe adding that “we are still waiting patiently to hear from government.”

8 COMMENTS

  1. The sale of Zanaco was another questionable RB deal. It was sold cheaply and I hope the President will relook at this quickly and make sure it is fully Zambian owned again with minority by foreigners who are always taking money out.

  2. PF Bootlicker if you dont know anything keep quiet. Zambians own Zanaco and im one of those who will soon receive a dividend from the Bank. Buy the shares from LUSE and you shall benefit from these profits the Bank has been declaring since its privatisation.

  3. if the new owners have proved to be good investors, i see no point in grabbing the bank from them.
    the best is to normalise the sale and lets move on with life.

  4. Am against the “it was sold cheaply” slogan Zambians have now adopted.u people just want companies when they re profitable but u want nothing to with growing the businesses,shame on u.

  5. “And Mr. Schousten says the bank will prioritize improved customer service by cutting the number of minutes customers spend in the branch to a maximum of 15 minutes”. This is called “Performance mesurement”. If government wants to assess how well their service provision is let them start monitoring the times when a person requests for a service and the time it takes for any government department to respond.
    Without this we might as well shut up. For me this has always been an issue in Zambia. I want to know how long it should take to get a service i wish to apply for; is it 2 weeks, is it 15 days?

  6. Zanaco was sold by Mwanawasa and not RB, please check your facts before posting ignorance. If in doubt ask Magande!

  7. @PF Chief Bootlicker, you are a man of questionable intelligence and memory. Is RB so powerful that he was able to privatise a company in 2005 when he was not even in government? Are you Ukwa in disguise?

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