FINANCIAL services group, ZB Financial Holdings (ZBFH), has resuscitated its asset management operations with effect from January 1, as it restructures its investments cluster, NewsDay Business can report.
“With effect from 1 January 2025, the Qupa Microfinance business was moved from the investment cluster to the banking cluster due to the similarities of its operations with the rest of the banking operations,” ZBFH said in a statement attached to its annual results for the period ended December 31, 2024.
The group said this move did not result in any changes in the operations of the Qupa Microfinance Company and had no impact on the group’s financial statements for the period under review.
“The group is resuscitating its asset management arm through the planned reopening of ZB Asset Management under the investments cluster, which plays a key role in supporting the group’s wealth management strategy,” ZBFH said.
“This will bring in scope for the group to offer pooled investment products to the market and, in the process enhance its profile as a one-stop shop for financial products. Resultantly, the investment properties under ZB Financial Holdings will be transferred back to ZB Asset Management Company.”
ZBFH added that following the resolution, the operations of ZB Capital were ceased effective January 1, 2025.
“ZB Capital’s corporate finance operations were transferred to ZB Bank Limited and its assets to ZBFH,” the group said.
The group posted a profit after tax increase of 4% to ZiG1,16 billion in its financial year ended December 31, 2024, from ZiG1,12 billion in the prior year.
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During the period under review, ZBFH’s total income increased by 38% to ZiG3,21 billion from ZiG2,3 billion in 2023.
ZBFH chief executive officer Shepherd Fungura said this performance outturn was on the back of significant improvement in non-funded income, mainly from commissions fees and other income, while funded income registered a steady improvement.
“Despite constrained growth in loans and advances, the group’s net interest income increased by 14% from ZiG0,417 billion in 2023 to ZiG0,475 billion in 2024. Loan impairment charges declined by 17%, from ZiG0,126 billion in 2023 to ZiG0,104 billion in 2024,” he said.
“Resultantly, income from lending activities net of recoveries rose by 27% from ZiG0,292 billion in 2023 to ZiG 0,370 billion in 2024, aided by improved interest margins and bad debts recovered was ZiG0,069 billion in 2024.”
Fungura said banking commissions and fees went up by 76% to close the period under review at ZiG1,15 billion.
Mortgages and other advances were ZiG3,98 billion in the period under review, up from ZiG2,1 billion in the prior year.
“The group’s operating costs increased by 8% from ZiG1,62 billion in 2023 to ZiG1,78 billion in 2024. The group is expecting cost savings from automation of its processes,” Fungura said.
The group’s total assets more than doubled to ZiG14,38 billion during the period under review, from ZiG7,06 billion in 2023.
Deposits and other related funding account balances closed the year at ZiG5,48 billion, representing a growth of 120% from ZiG2,48 billion in the prior year.
“The growth was supported by an increase in US dollar deposits across all sectors,” Fungura said.
“Earning assets increased by 103% from ZiG4,81 billion as at 31 December 2023 to ZiG9,34 billion as at 31 December 2024 whilst constituting 65% of total assets (68% at 31 December 2023).”
ZBFH acting board chairperson Agnes Makamure said notwithstanding the efforts of authorities to maintain macroeconomic stability through prudent monetary policy, a balanced approach should be be considered. This entails one that harmonised stability with measures to stimulate economic growth.
“The group encourages policymakers to explore initiatives that foster a conducive business environment, promote investment, and support the overall development of the economy,” she said.
“ZBFH is confident that the implementation of its sustainable revenue generation and cost optimisation strategies will sustain the group’s performance.”
