ZB FINANCIAL Holdings plans to complete the merger of its two banking units — ZB Bank and ZB Building Society – before the end of the year as part of a consolidation strategy.
Report by Mernat Mafirakureva
The group posted an after-tax profit of $7, 8 million, up 11 % from the prior year.
In a statement accompanying its financial results for the year ended December 31, 2012, group chairman Bothwell Nyajeka said ZB had maintained a growth path with total assets increasing 20% to 326, 7 million.
The group hopes to complete the merger of ZB Bank Limited and ZB Building Society before the end of the current financial year in order to achieve efficient capital deployment.
“Efforts towards the overall recapitalisation of the group’s operations have gathered momentum and should see the injection of further liquidity into the group’s operations,” Nyajeka said. “It is hoped that positive results will have been achieved by June 2014.” The Reserve Bank of Zimbabwe last year raised the minimum capital requirements for commercial and building societies to $100 million.
Early this month, central bank boss Gideon Gono said banks now had up to 2020 to comply with the revised capital requirements.
According to ZB, deposits remained largely transient resulting in the inability by its banking units to provide long-term credit to customers.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
ZB Bank recorded an after-tax profit of $5,6 million, down 34% from the prior year attributed to normalisation expense on the cost base as some of the expenses were deferred in the previous years.
During the period under review, new branches were opened in Karoi and Redcliff while agencies were set up at Millenium and Premier Tobacco Auction Floors, Chinhoyi, Midlands State University and Mbare informal market.
ZB Building Society profit was down 61% to $0,9 million attributed to the negative impact of a value loss of $0,8 million arising from the revaluation of investment properties.
ZB Asset Management and ZB Securities recorded losses of $0,3 million and $0,1 million respectively due to the lacklustre performance of the Zimbabwe Stock Exchange.
“A budgetary provision has been made for the continuation of the channel expansion programme with emphasis on low-cost electronic media. Branch redecorations will also continue in 2013 in an effort to continuously enhance customer experience,” said the group’s chief executive officer Elisha Mushayakarara.
