In compliance with the requirements of the Securities Act Cap 354 of the laws of Zambia and Listing Requirements of the Lusaka Securities Exchange, the Directors of Zanaco are pleased to announce the unaudited half-year interim results for the period ended 30 June 2016.
The financial performance of the Bank in the period under review remained challenging mainly due to:
- Market wide tight liquidity conditions resulting into:
(a) Slower than anticipated growth in earning assets
(b) Rising cost of funds.
- Volatility in the exchange rate giving rise to high operating expenses.
During the period under review, the Bank remained well capitalized above the minimum required ratio of 10%. The shareholders’ funds increased by 9% compared to June 2015.
The tight liquidity conditions are expected to remain a challenge for the rest of 2016. This will impact business growth. Inflation is projected to decline in the second half of 2016.
Our commitment in 2016 still continues to be a drive to changes needed in the organisation through a transformation journey by focusing on the following;
- Bringing the structure and branches in line with our strategy.
- Aligning processes with the new structure and ways of working.
- Further improving the quality of services provided to our customers.
- Raising our operating and financial efficiency.
- Enhancing the performance culture and aligning compensation and reward systems with strategy and new ways of working.
BY ORDER OF THE BOARD
2016 Interim financial results.pdf