ZANACO releases 2016 Annual Report

By Published On: March 14th, 2017Categories: Corporate announcement

The Board of Directors of Zambia National Commercial Bank Plc is pleased to announce the release of the 2016 annual report . Below are extracts from the Chairperson’s report:

In a very difficult economic, financial and regulatory environment Zanaco demonstrated its resilience and declared a net operating profit, excluding transformation expenses, of ZMK248 million, underscoring the Bank’s strength and capacity to generate positive results. The Bank’s core capital adequacy stood at 15%.

Challenges of the economic environment

Zanaco faced three main challenges in 2016 and these will continue to determine the economic and financial situation in the coming year…

Zanaco’s response to the challenges

Zanaco has four management drivers that enable it, from a position of strength, to overcome these challenges and to strongly gain ground against its major competitors: Geographic footprint and recurring nature of revenues.

Zanaco has achieved a geographic positioning centred on its core markets with a balance between the urban and rural branches that are supported by over 500 Agencies.

The retail bank model, which provides services to our over one million customers, has been revamped so as to deliver long term incremental value in recurring revenues.

Future prospects

The overarching priority in 2017 is to commence the initiatives required to place Zanaco in pole position by 2020 and making it a top universal and transactional Bank.

The focus of the Bank’s initiatives have clearly been to improve operating efficiency, generate incremental profit and enhance the performance of our people. In this regard therefore, our one million customers will be placed in their appropriate segments to serve them better whilst ensuring that customer service is second to none;

The digitisation of the Bank is critical to bring our innovativeness back into the 21st century and build upon past successes that saw Zanaco pioneer ATMs and Xapit;

As a Board, with the support of the Executive management team, a new Shareholder Relationship, Management guidelines are to be implemented to effect better and improved communication not only with our esteemed shareholders but all key stakeholders.

The Board of Directors hastens to advise that this transformation journey that has begun will ultimately see a much improved financial and people performance. There are a number of areas that we believe require further attention to realise our strategic ambition of being the universal and top transaction Bank by 2020. However, the important thing is that we have remained resolute in making the much needed investment in resolving the identified gaps for improved performance.

Executive Management changes

I am pleased to advise that in November 2016, Mr Henk G Mulder was appointed Managing Director and Chief Executive Officer of Zanaco, taking over from Mr. Bruce Dick, who retired at the end of October 2016. The Board of Directors has every confidence in Mr Mulder’s wide and varied experience to ensure that Zanaco begins to regain its rightful place as a top, well performing bank in the financial sector and an employer of choice that will provide growing value to all shareholders.


I wish to acknowledge with gratitude the Board of Directors support to Management and all Board related activities in 2016. There was a high level of interaction with the Board by Management in reviewing the critical proposals, providing decisions quickly and effectively in driving the transformation programme.

Furthermore, and on behalf of the Board of Directors, and my own behalf, I wish to thank the Executive team, Management and staff of Zanaco for their tireless efforts, working around the clock to refresh the values of the Bank and to improve the work culture for enhanced performance necessary for the growth being sought.

I am convinced we will achieve all our goals and this will ultimately push up the share price. You can be rest assured that everyone who works for Zanaco, including Arise BV, from the Board of Directors to the 1,219 people working for the service of our over one million customers, will be working to consolidate Zanaco as a safe and profitable investment for our 3,400 investors.

Thank you very much for your support and confidence.

Charity C Lumpa

Related download | 2016 Annual Financial Report.pdf

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