ZB Financial Holdings’ after tax profit for the half year vaulted 168 percent to US$2,5 million driven by growth in total income and positive out-turn in capital gains on trade investments.Total income in the half-year period jumped by 20 percent to US$36,2 million on the back of a 28 percent rise in premiums revenue compared to the comparative period last year.
The financial services group said there was 164 percent improved out-turn on capital gains on trade investments, which posted a loss in the same period last year.
ZB said the marked resurgence of the Zimbabwe Stock Exchange had a positive impact on the group’s results while interest margins and transactional fees remained relatively flat.
The group achieved significant growth in profitability despite a 6 percent decline in net interest income from US$11,2 million in the interim last year to US$10,6 million this year.
Basic and fully diluted earnings per share were unchanged in the half year period at US0,01c, but the group’s assets increased by 7 percent to US$348 million at June 30, 2013.
Insurance expenses increased by 26 percent consistent with the growth in the business volumes.
ZB said an aggregated insurance technical result of US$4,3 million was posted. In addition, an interim transfer to the life fund of US$1,9 million was made in the interim.
Operating costs during the period under review came in at US$30 million, reflecting a 10 percent increased when compared against the comparative period figure of US$27 million last year. This represented 83 percent efficiency against 91 percent achieved last year.
ZB said in sympathy with the liquidity conditions the loans to deposit ratio was maintained at a conservative ratio of 63 percent, the same level as at December 31, 2012. The group said re-organisation of the group’s capital resources through the amalgamation of ZB’s banking operations is underway, which will enhance its underwriting capacity.
ZB said it was also still pursuing the authority granted by shareholders in 2008 for the recapitalisation of the group through a private placement and has engaged prospective investors.
The group said channel expansion continued in the interim period with the establishment of three additional branches at informal trading zones in Harare and Bulawayo.