Madison Finance Company ( Zambia) – slides into a loss of K34.932 million for the year ending 31 December 2020

By Published On: July 26th, 2021Categories: Corporate announcement, Earnings

Madison Financial Services PLC ( 2020 Abridged Report


The Company recorded a loss of K34.932 million for the year ending 31 December 2020 compared to a profit of K 6.557 million recorded as at 31 December 2019.


The key highlights of the financial performance for the period under review were;
1. Loss of K 34 million against a profit of K6 million in 2019. The loss is mainly on account of the de-recognition of deferred tax in the year, exchange losses experienced and the decline of interest income due to suspension in lending to one sector due to delayed remittances of loan repayments.
2. Interest income of K 104 million is lower than last year by 23% while the Interest expense of K 71 million is lower than last years by 5%.
3. The loans and advances to customers declined by 28% from last year .The decline of the loan book was as a result of suspension in lending due to delayed payments by counter parties.
4. Customers’ deposits declined by 25% due to reduced deposit mobilisation activities as appetite to lend to one sector reduced.
5. The total assets and liabilities reduced by 19% during the period under review. The reduction in assets is mainly arising from a reduced growth in the loan book. The reduction in liabilities is driven by the reduction in customer deposits.


The Company performance in 2021 is expected to be a marginal growth in assets and liabilities with a constant profit position. This will be on the back of:
• Expected low disbursements performance amidst the slowed economic activity due to COVID-19
• Operational costs restructure to reflect the anticipated economic conditions
• Competitive pricing of liabilities to maintain the direct costs within acceptable cost to income ratios.
• Quality underwriting, enhanced credit appraisals and post disbursement performance reviews

Madison Financial Services PLC (

Share price: 2.47 Kwacha (0.00 | 0.00% – 10/08/22)