LUSAKA (Business Telegraph) – In our earlier analysis for 1Q20, Indo Zambia Bank Ltd was tagged a financial institution worth watching for its bullish earnings momentum. Half year after tax earnings reveal an aggressive sprint to the top two bracket after the indigenous bank posted after tax earnings of K111.8mln a 48.9% year on year and a 103% growth quarter on quarter. Indo Zambia generated the highest after tax profit for the second quarter at K74.0mln which on a year to date basis rallied its earnings to above K100mln mark which only two banks have surpassed in an 18 bank industry.
Read also: A local bank worth watching as earnings resilience persists, Indo Zambia
The bank grew its total income by 38.5% to K417.2mln of which K242.2mln is generated for the second quarter supported by 25% increase in non interest revenue and 35.4% interest income growth which was in part slowed by margin squeeze from the May rate cut that saw the policy rate trimmed 225 basis points on all MPR linked facilities. Indo Zambia’s income lines have been boosted by investment in government securities and advances.
Non interest expenses leaned 23.0% to K132.5mln from a year ago while its interest expenses grew 51.0% to K196.4mln reflecting wider funding costs. The bank showed a decent cost to income ratio of 60.1% below the industry average generally.
Other lines that supported IZBs bottom line were the credit write backs of K9.9mln in the second quarter of this year.
The Kwacha Arbitrageur