Zanaco Managing Director & CEO Announces The Bank’s Financial Performance For The Year Ended 2016
Zambia National Commercial Bank Plc (Zanaco) announced its performance for the year ended 2016. This was at a Press Briefing held on 30th March, 2016, at the Hotel Intercontinental following the Bank’s Annual General Meeting (AGM). The Managing Director & CEO, Mr. Henk Mulder, announced that the macroeconomic market conditions during the year impacted the Bank’s performance. Market liquidity remained tight with the kwacha remaining relatively stable throughout 2016. Inflation also remained high for the most part of 2016, but started to decline during in the fourth quarter of the year.
Mr. Mulder also announced that Zanaco’s total revenue increased from K 1,068 million in 2015 to K1,211 million in 2016. However, the Profit After Tax significantly declined from K 118 million in 2015 to K30m. This was mainly attributed to an increase in expenses driven by investments made in a transformation program that the Bank has embarked on.
Mr. Mulder further announced that despite the significant decline in Profit After Tax, the total Balance Sheet grew from K 7,946 million in 2015 to K8,175 in 2016. He announced that deposits grew to K6,256 in 2016 from K6,033 million in 2015, however, loans and advances slightly reduced from K3,447million in 2015 to K3,392 in 2016 due to tight liquidity.
Commenting on the future outlook, Mr. Mulder mentioned that the outlook looks good despite the economy remaining vulnerable and that opportunities for growth remain bright with good rainfall patterns and reduced load shedding. The Bank’s transformational agenda will be further reinforced by a revised strategy for enhanced growth. Alongside these key strategic initiatives, investments in technology will play a pivotal role in banking products and service delivery.
He reaffirmed Zanaco’s Vision to be the Universal Bank serving Retail, Public Sector, Corporates, Food & Agriculture and SMEs and to also be the Top Transactional Bank by 2020. The Bank further aspires to improve its segmentation and product offering as well sales and service as it optimises its distribution channels. Zanaco is set to continue to invest in its people, and its digital transformation in order to ensure that it achieves its strategic aspirations.