In compliance with the requirements of the Securities Act No.41 of 2016 of the Laws of Zambia and Listings Requirements of the Lusaka Securities Exchange, the Directors of Zanaco are pleased to announce the audited year end results for the period ended 31 December 2018.

Financial Highlights

The Bank recorded a 61% increase in the profit for the year from K114 million in 2017 to K184 million in 2018. The strong performance of the Bank is on the backdrop of a strong balance sheet. Net loans and advances increased from K3, 223.1 million to K4, 207 million representing a 30.5% increase. The associated credit impairments significantly improved from a charge to profit and loss in the prior year of K248 million to a relief of K17 million in 2018. This is attributable to the Bank’s focus on enhanced recoveries but also ensuring that quality assets are booked.

Customer deposits increased to K8, 899 million from K7, 455 million representing a 19.4% increase. Total assets increased to K10, 614 million from K9, 543 million. Shareholders’ fund reduced by 19% due to the adoption of IFRS 9 financial instruments which came into effect on 1 January 2018. However, Earnings per share increased by 61% from K0.079 to K0.127 due to the strong performance alluded to above.

Total income was broadly unchanged from K1, 438 million in 2017 to K1, 436 million in 2018. This is in spite of the revenue lost estimated at K60 million due to the Bank of Zambia driven cessation on unwarranted fees which were effected on 4 September 2018. Operational costs have increased by 18% mainly due to investment in business growth in line with the Bank’s strategy.


The Banks capital was well managed with the Capital Adequacy Ratio at the end of the year of 13% which is above the current regulatory requirement of 10%. The bank is well positioned for growth from a capital perspective.


The Bank is well on its way to achieving its medium-term strategic goal of being the Top Transactional Bank in Zambia. It is confidently well positioned to embrace digital developments to compete strongly and transform the face of banking in Zambia. The continued improvement of the Bank’s performance, incremental revenue generation capabilities, profitability and operational efficiency provide a sure footing for attaining market leadership.

Download Zanaco FY2018 Abridged Financial Report