ZB Financial Holdings posted a $5,2 million profit for the six months ended June 30 buoyed by a strong growth in the volume of business underwritten.
The profit represents a 713% increase in profits for the growth that recorded a loss of $2,6 million for the full-year ended December 2010.
ZB Bank and ZB Building Society posted operating profit of $3,1 million and $1,3 million respectively.
In a statement accompanying the financial results, group chief executive officer Elisha Mushayakarara said loan to deposit ratio increased to 79% from 64% in December 2010.
“The trend is reflective of the credit appetite at both the corporate and personal sectors as the economy thrives to increase productive capacity,” said Mushayakarara.
“The long-term quality of the credit has generally remained good even though short-term debt servicing constraints have been experienced resulting in the ratio of non-performing loans to the credit book increasing from 5% to 6%.”
The group’s operating expenses at $19 million were up 35% as a result of sustained pressure on staff related expenses.
Non-interest income improved by 124% compared to prior year whilst contributing 78% of the total income earned by the group.
“The growth is driven by a strong fee income outturn as the number of active accounts increased during the period under review,” said Mushayakarara.
ZB Life Assurance recorded a profit of $0,87 million driven by a strong performance of investment portfolio largely made up of Zimbabwe Stock Exchange counters.
ZB Reinsurance posted a profit of $0,47 million while recording positive underwriting of $1,5 million.
The group said the possibility of having a technical and financial partner remained a strategic option for ZB Holdings which it continued to evaluate.
Mushayakarara said during the period under review there was an improved uptake of banking products though the shortage of reasonable priced long-term funding curtailed business expansion in banking operations.