Zanaco records K1 Billion Profit after Tax
Zambia National Commercial Bank (Zanaco) Plc has recorded the highest profits ever achieved by any commercial bank in Zambia, posting K1 billion Profit After Tax (PAT) in its 2021 financial year prudential results.
The K1 billion PAT in the 2021 financial year, becomes the largest profit, for the bank, which has in the last five years posted solid results.
Despite the effects of COVID-19, which continue to affect Zambia and the rest of the world, Zanaco Plc managed to post a 208 % 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.
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.
Trading income stood at K614.6 million and commission fees at K695.1 million from K377.3 million and K569.7 million respectively. Zanaco also witnessed growth in its balance sheet to K26.4 billion from K19.5 billion. The bank’s loans and advances grew by 31 % to K9.8 billion from K7.5 billion in 2020. Investments in securities also grew from K6.1 billion to K9.4 billion.
Commenting on the development, Zanaco Chief Executive Officer, Ms Mukwandi Chibesakunda said, “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”.
Mrs. Chibesakunda said the bank will endeavour 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.
“The economic fundamentals are positive and we remain committed to support private sector growth for Zambia, our home, 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,” Mrs. Chibesakunda concluded.
For more information on Zanaco visit www.zanaco.co.zm