Zanaco Plc | Summarised Audited Results For The Year Ended 31 December 2023

By Published On: March 8th, 2024Categories: Corporate announcement, Earnings

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 results for the year ended 31 December 2023

Financial Highlights

The Group continued on a strong financial trajectory closing the year at K1.7 billion representing a 49% (K571 million) increase in profits. The growth in profitability was driven by increase in total operating income, astute management of costs and impairments. Total operating income grew by 34% (K1.3 billion) driven mainly by increase in interest income by 22% (K850 million) supported by the growth of the loan book, 128% (K770 million) growth in treasury trading income. Efficient credit monitoring practices and focus on origination of quality assets resulted in a notable decrease in impairments in the year by 88% from K186 million recorded in the prior year to K22 million as at the close of the 2023 financial year.

Total operating expenses increased by 27% (K538 million) driven by implementation of the Groups’ strategic initiatives aimed at positioning the Bank to be future-fit. The Group costs were also impacted by the depreciation of the local currency and inflationary increase.

The notable growth in profitability was supported by a resilient balance sheet with a total asset base of K45 billion, with a year on year growth of 25%. Total assets mainly comprised of cash and balances with Bank of Zambia – K8.9 billion (year on year growth of 87%), Trading assets – K2.3 billion (year on year growth of 27%), loans and advances – K16.2 billion (year on year growth of 34%). The growth in assets was mainly supported by the growth in customer deposits which grew by 14% year on year (K4.2 billion) closing the year with a deposit base of K33.9 billion. The growth in deposits is in line with the Groups’ strategy of growing deposits to increase funds available for investments. Total liabilities recorded a growth of 23% (K7.5 billion) which is mainly attributable to the growth in customer deposits 14% (K4.2 billion) and deposits from other Banks which grew by K1.9 billion.


The Group proactively manages its capital position to ensure that it adequately capitalize to protect shareholder value and ensure compliance at all times. The Group’s Capital Adequacy Ratio at the end of the year was 19.7% which is well above the regulatory limit.

Future Outlook

The Group continuously challenges its ways of operations to ensure that it remains future-fit with a focus on the customer. The Group will continue to leverage off automation, market-leading digital platforms to deliver cost effective and innovative transactional propositions to its customers while ensuring that it operates in a sustainable manner and contribute positively to the communities and societies it operates in.

By Order of the Board


Issued in Lusaka, Zambia on 6 March 2024

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Summarised Audited Results For The Year Ended 31 December 2023.pdf

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