LEADING financial services provider, ZB Financial Holdings (ZBFH) has credited the newly introduced ZWG currency and the subsequent Monetary Policy Statement (MPS) for prompting some degree of economic stability.
Presenting the group’s performance for the half year period ended June 30 2024, ZBFH chairperson, Alex Makamure said significant economic challenges, including high inflation, and weakening local currency and severe drought conditions persisted on the back of a waning ZWL on both the parallel and official markets.
“However, following the introduction of a new currency on 5 April 2024, relative stability was restored and the local currency’s rate of depreciation against the US$ decelerated significantly to only 0.01% between the period 5 April 2024 to June 30, 2024,” he said.
The bank also commended the release of the 2024 Monetary Policy measures for stabilizing the markets.
However, for the half year period ended 30 June 2024, the group recorded a 41% decrease in total income from ZWG2.175bn for the prior period in 2023, to ZWG1.275bn in 2024.
Income performance continued to be mainly underpinned by fair value adjustments. Fair value adjustments decreased by 95%, from ZWG1.855bn in 2023 to ZWG95.6m in 2024.
Performance was also supported by a 27% decrease in Other Operating Income, from ZWG1.255bn in 2023 to ZWG913.94m as well as 28% increase in Commissions and Fees from ZWG275.324m in 2023 to ZWG353.007m.
Net interest income rose by 20%, from ZWG174.948m in 2023 to ZWG209.977m in 2024. Net expected credit losses decreased 75%, from ZW36.235m in 2023 to ZWG 9.206m in 2024 due to recoveries made during the period under review.
Resultantly, net income from lending activities rose by 45%, from ZWG138.695m in 2023 to ZWG200.771m in 2024
Going forward, the group intends to focus on achieving its year end targets, enhancing lending capacity, and preserving the value through balance sheet hardening. — NewZimbabwe
