VERNA NYAMUCHENGWE
FINANCIAL institution ZB Bank Limited has reported a 41% decrease in total income to ZWG1.275 billion for the half-year ended 30 June 2024 as compared to ZWG2.17 billion recorded in the corresponding year in 2023.
During the period under review, the bank reported that its performance was affected by fair value adjustments which decreased by 95% from ZWG1.855 billion in 2023 to ZWG95.6 million in 2024.
ZB Bank Limited acting chairperson Agnes Makamure said the inflation rate rose approximately by 71.9% between January and March 2024 on the official market, posing challenges to business performance.
“The first half of 2024 was marked by significant economic challenges, including high inflation, weakening local currency and severe drought conditions,” Makamure said.
Performance was also impacted by a 96% drop in share of associate companies’ profit net of tax, from ZWG79.966 million 2023 to ZWG3.417bn in 2023. ZB Bank Limited group chief executive Shepherd Fungura said despite economic challenges during the period under review, the bank remained profitable during the first half of 2024.
“ZB Bank Limited remained profitable, posting a profit after tax of ZWG888.633 billion in June 2024, as compared to ZWG1.489 billion in June 2023,” Fungura said.
The bank’s total assets stood at ZWG6.059, an increase from ZWG5.669 million recorded as at 31 December 2023.
However, the assets increased by 4% in real terms, from ZWG8.772 billion as at 31 December 2023 to ZWG9.143 billion as 30 June 2024.
ZB Bank Limited has reported ZWG4.743 million after-tax profit for ZB Building Society in 2024, as compared to a profit of ZWG260.420 million in 2023.
As at June 30, 2024, the building society’s total assets stood at ZWG389.577 million from ZWG408.026 million as at 31 December 2023.
The group reported a 29% increase in total equity to ZWG5.067 billion and a positive performance outturn for the period of 60% in retained earnings.
During the period under review, ZB bank reported an increase of 20% in net interest income from ZWG174.948 million in 2023 to ZWG209.977 million in 2024.
A 75% decrease in net expected credit from ZWG36.235 million in 2023 to ZWG 9.206 million in 2024 has been reported.
However, net income from lending activities rose by 45% to ZWG200.771 million in 2024.
