Wednesday, February 28, 2024

ZANACO- PLC becomes first Zambian Bank to post K1 billion profit after tax

Share

Zambia National Commercial Bank -ZANACO- PLC has posted K1 billion profit after tax in its 2021 financial year prudential results, the highest profits ever achieved by any commercial bank in Zambia.

The K1 billion profit after tax in the 2021 financial year, becomes the largest profit, for the bank, which has in the last five years posted solid results.

Announcing the development in Lusaka today, ZANACO Chief Executive Officer Mukwandi Chibesakunda said despite the effects of covid-19, which continue to affect Zambia and the rest of the world, Zanaco PLC managed to post a 208 percent profit jump, placing the bank as the leading bank in Zambia.

In a speech read on her behalf by bank chief commercial officer Chali Mwefyeni, Ms Chibesakunda says these results have been driven by prudent risk management, solid market share and strategic customer solutions.

she says during the period under review, Zanaco’s revenue increased to k3.9 billion from k2.4 billion recorded in the financial year ended December 2020, largely due to increased interest income in loans and overdrafts and investments in securities, which stood at K1.9 billion and K1.6 billion from K1.1 billion and K986.7 million respectively.

Ms. Chibesakunda says trading income stood at K614.6 million and commission fees at K695.1 million from K377.3 million and k569.7 million respectively.
She says the bank also witnessed growth in its balance sheet to K26.4 billion from K19.5 billion and the bank’s loans and advances grew by 31 percent to K9.8 billion from K7.5 billion in 2020 while investments in securities also grew from K6.1 billion to K9.4 billion.

15 COMMENTS

  1. Perform a thorough review of impairments and write-backs. I do not believe one bank can have a very distinguished performance.

    1
    3
  2. This can’t be true ,as the other foreign banks don’t keep their profits in Zambia but outside, and they don’t remit correct figures in in order to evade tax. Hence they are always complaining of not making profits, The same game the mines play. But I don’t think that ll be the case under HH, the man deeply understands what an audit is and I can’t doubt that he ll do it himself, behind the scenes. So imwe tuma Banks and Mines be careful from now onwards

    1
    6
  3. Why should this be a surprise? We are counting in Kwacha (ZMW) folks right? People inflation has been knocking on our doors! Last reporting period all these banks were way under a billion and now they are slowly crossing the magic number and we get surprised! Those who know how to do the adjustments and show in this performance in a different currency will tell us that we are no better or may be even worse than last year …

    3
    2
  4. Whn banks are making lots money in a subdued economic environment, it’s always time to be worried. Whom are they lending money to?

  5. You have posted K1 bn profits in an environment where interest rates are at Kaloba levels and are not driven by prudent risk management. The solid market share was politically driven.

  6. Trading income and commission fess contributed K1.7BN, they’re still raking in billions through dubious fees and charges. Just put 20pin in the account and check after 3 months, you’ll understand what I mean

  7. Banks in Zambia have the largest share in the country’s retail sector so this shouldn’t be a surprise. But one thing is this company still has one of the worst performing services. Services take quite time. That’s where I’m shocked.

  8. Yaba, already! The new dawn government at work. Good job! Fruits of your ecnomic policies have begun to manifest themselves.

  9. Banks! All they do is just steal pour money. You bank with them and then they start charging you service fees yet they are busy earning interest by lending out your money. I wish I was an Arab

  10. It makes sense. I have received notices of my account being debited for transactions that never went through at a point of sale. The vendor never received the cash. Zanaco call center tells you to go line up at your account domicile branch 300km away to lodge a complaint for a k100 transaction. As an alternative, they give you a WhatsApp number on which your message is only responded to with a question, instead of a solution or an indication of concern o their end after several days. You just end up frustrated and they get the service charges and, suspiciously, the transaction amount.

Comments are closed.

Read more

Local News

Discover more from Lusaka Times-Zambia's Leading Online News Site - LusakaTimes.com

Subscribe now to keep reading and get access to the full archive.

Continue Reading