BBZ’s earnings jumped significantly driven by strong and solid growth in revenue metrics in first quarter of 2019 comparing with 2018 period. Systemic factors such as the autopsy of unwarranted fees weighed the fees and commission lines however non interest costs widened higher than anticipated causing margin erosion that cost the bank first place in the market by a few Kwacha’s. BBZ is still in contention for first place given its 2019 strategy.
One of Zambia’s top two banks by both asset size and profitability, Barclays Bank PLC – BBZ recorded an earnings levitation of 36.31% in PAT to K73.45 million compared with K53.88 million in Q1:18. This was according to the quarterly financial statements in line with section 92(1) of the BFS Act (2017). Barclays takes second place in a tight earnings marathon after Stanbic Bank – SBZ.
Total revenues rallied 16.74% to K294.34 million from K252.16 million, propelled by 26.65% jump in interest income to K216.59 million (K168.35 million) from loans and advances whose income widened 49.29% to K168.88 million (K112.72 million) backed by a 17% rise in income to K138.6 million from investments in government bills and bonds.
Non interest income line slid 4.58% to K115.81 million from K121.37 million weighed by autopsy effects of the unwarranted fees central bank directive that manifested in a 7.65% easing in ‘fees and commission’ line to K67.89 million from K73.52 million. Trading income was fairly flat with an infinitesimal 3.75% slide to K45.91 million from K47.69 million in first quarter of 2018. BBZ still earned second place in the trading income line of the entire market.
Expenses were driven by a 64.4% widening in interest costs on the back of a 62.9% uptick in the interest payments of fixed deposits while non interest expense line widened 28.45% to K183.94 million from K143.19 million weighed by a 32% ballooning of operational expenses.
Credit risk management was marginally unchanged with impairment levels at K38.06 million compared with a K37.59 million a year ago representing a 1.26% increase.
