By BUUMBA CHIMBULU
ZANACO bank plc closed the 2021 financial year with a balance sheet of K9.8 billion, as it registers the first ever largest Profit After Tax (PAT) in Zambia’s banking industry.
Out of this balance sheet, K5 billion was used to support the corporate and investment bank while K2 billion was spent on the business space, according to Chief Executive Officer, Mukwandi Chibesakunda, at a media briefing in Lusaka yesterday.
Ms Mukwandi also said the bank had reported Profit After Tax of K1 billion in 2021, the highest ever achieved by any financial institution in Zambia.
This becomes the largest profit for the bank, which has in the last five year posted solid results.
She said this in a speech read for her by Zanaco Chief Commercial Officer, Chali Mwefyeni.
According to the 2021 financial results, the bank’s revenue increased to K3.9 billion from K2.4 billion the prior year.
This was 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 indicated that trading income stood at K614.6 million and commission fees at K695.1 million from K377.3 million and K569.7 million respectively.
“We have managed to register growth in our balance sheet to K26.4 million from K19.5 billion. The banks loans and advances grew by 31 per cent to K9.8 million from K7.5 billion in 2020,” she said.
Ms Chibesakunda said investments in securities also grew from K6.1 billion to K9.4 billion.
Despite the effects of Covid-19, Zanaco managed to post a 208 per cent profit jump, placing the bank as the leading bank in Zambia.
These results have been driven by prudent risk management, solid market share and strategic customer solutions.
“The results we have achieved are remarkable results for our home-grown Bank and a proud moment for our team. We also owe our success to our 2.5 million customers, who remain loyal and supportive,” Ms Chibesakunda said.
Ms Chibesakunda said the bank would endeavor to remain the leading bank in Zambia, by continuing to grow its revenue, profits, transactions and client base.
“Customer experience and enhancing efficiencies through innovation will remain critical for the Bank. We are looking to grow our customer base to 5 million by 2025 and to achieve this we will be reviewing and redesigning our customer journey and expanding our Zanaco Xpress Agencies, which currently stand at 15,000 across the country,” she said.
Ms Chibesakunda indicated that the economic fundamentals are positive and remain committed to support private sector growth for Zambia to attain economic transformation.
“We will among other projects support environmentally-friendly investments through our Green Outcome Fund, which we signed in partnership with World Wide Fund for Nature (WWF) and Kukula Capital as well as the Agricultural value chain with our 30 million Euros facility in partnership with the European Investment Bank,” Ms Chibesakunda said.
