ZB FINANCIAL Holdings Limited (ZBFH) has recorded a below-its-target performance in the five months to May attributed to losses in equity investments, a company official has said.
VICTORIA MTOMBA BUSINESS REPORTER
In an update to shareholders for the twenty-fifth annual general meeting, the group chairperson Tendai Mafunda said on Friday the group expects an improved performance in the second half of the year.
“However, a depressed outturn on the equity portfolio has had a significant negative impact on overall out-turn to date with the result that the group is operating at slightly below break-even level after accounting for the unrealised loss on investments. Costs have been managed at 2% below the 2013 levels. The performance is so far below the operational targets,” the group said.
The group’s balance sheet increased marginally by 2% as at 31 May 2014 from the levels achieved as at 31 December 2013.
Trading revenue increased by 3%.
In the financial year ended December 31 2013, ZBFH’s net profit dipped 93% to $900 000 million from $11,4 million in 2012 due to reduction in income after the central bank put a cap on bank charges and interest rates.
The cap was removed in December.
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The cap affected revenue which went down to $63,2 million from $69 million in 2012.
In 2013 the group’s total deposits were up 1% to $218,6 million and a 1% increase in total assets was recorded to close at $332 million.
Total income for the group was 8% down to $64,9 million and interest income was up to $36 million from $35 million.
The group’s subsidiaries include ZB Building Society, ZB Bank Limited, ZB Life Assurance and ZB Reinsurance.
