Zambia’s largest indigenous bank by both asset and profitability, Zambia National Commercial Bank PLC quadrupled its first quarter after tax earnings to K208.9-million year on year while maintaining income leadership across almost all earning lines to K815.5 million. This was according to quarterly financial statements in the press for the quarter ended March 31, 2021.
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The Lusaka Securities Exchange – LuSE listed local bank (ISIN:ZM0000000250) has continued to demonstrate its big strong reliable capability with solid growth in interest margins that widened 202.2% to K804.3 million supported by strong advances and lengthened duration. The banks credit book expanded 49.7% to K7.9 billion supported by balance sheet extension to various key sectors of the economy year on year. Non-interest revenue ebbed an infinitesimal 1.3% slowed by 33.0% decline in foreign exchange trading income offset by a 33.0% growth in fees and commissions.
Cost to income ratio for 1Q21 remarkably improved to 63.0% from 79.0% a year ago signaling efficiencies and preferably positive jaws. Non interest related costs grew 24.5% speculatively due to pandemic spend or management restructures as part of business reorganization.
Zambia National Commercial Bank – Chief Executive Officer Mukwandi Chibesakunda
The bank has continued to make inroads into various sectors such as the agribusiness sector through key strategic partnerships such as the recently signed memorandum with the GIZ. Innovation investment is evident in the recent partnership with Digital PayGo agent banking and the visa infinite debit card.
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First quarter performance to some extent reflects the first real strategic payoff under new top leadership in the C-suite following appointment of top banker Mukwandi Chibesakunda appointed on October 01, 2021.
The Kwacha Arbitrageur