Zanaco’s after tax profit drops 1% to K868m

Non-funded income saw a sharp rise of 55 percent (K232 million), boosted by a 43 percent growth in treasury income and K55 million recovered from other operations.

“Net fees and commissions increased by 24 percent, underpinned by higher transactional volumes across digital channels, while net interest income grew by three percent, reflecting improved asset yields and growth in the loan book,” Ms Kaulung’ombe-Inampasa said.

The rise in operating expenses to K295 million was driven by strategic investments in technology, human capital, and marketing initiatives aimed at driving digital uptake, customer acquisition and transaction volumes.

Additionally, compliance costs contributed to the expenditure spike, with K85 million directed towards the newly introduced Bank of Zambia (BoZ) deposit insurance scheme designed to enhance banking sector stability and protect depositors.

Ms Kaulung’ombe-Inampasa said despite the rise in operational costs, the group maintained a robust balance sheet, with total assets growing by seven percent to K3.5 billion.

She also said holdings in government securities surged by 45 percent to K4.8 billion, while loans and advances expanded by nine percent (K1.6 billion).

Customer deposits increased by five percent to reach K2.1 billion, and retained earnings rose by 25 percent to K1.3 billion.

Ms Kaulung’ombe-Inampasa said the group reported a strong capital adequacy ratio of 25.47 percent after paying out K704 million in dividends to shareholders.

Zanaco is now looking to leverage artificial intelligence (AI) and advanced data analytics to drive innovation, optimise operations and enhance customer experience as part of its ongoing digital transformation strategy. https://enews.daily-mail.co.zm/welcome/home