Zanaco In 32% Deposits Growth

ZANACO’s has posted an impressive 32-per cent growth in its 2011 deposits with the year end figure rising to K3.4 trillion from about K2.6 trillion the previous year.

Releasing the 2011 performance results, Zanaco managing director Martyn Schouten said the impressive growth in the deposits was a result of a number of creative relevant products and its outreach to the unbanked communities.

Mr Schouten said Zanaco had posted impressive figures in all key areas saying the prospects for further growth existed especially in its lending small and medium enterprises (SME) and farmers.

“The bank had a phenomenal year with growth in all important areas, our distribution is by far ahead of competition with our country-wide network servicing the unbanked, our capitalisation is impressive and the deposits and assets levels keep on increasing.

“Deposits reached K3.4 trillion while in 2010, they were at K2.59 trillion which represented a growth of 32 per cent while our assets grew even bigger by 34 per cent to K4.7 trillion from 2010’s levels of K3.5 trillion,” he said.

He said both the profits before and after tax grew by seven per cent with the former rising to K185 billion while the after-tax-profit levels reached K121 billion from the previous year’s K113 billion.

Revenue for the bank, which was last year voted the best bank in Zambia by Euro Money grew by 10 per cent to K626 billion while the dividends per share paid out remained stagnant at K28 billion.

He added Zanaco was well capitalised and ready to meet the new Bank of Zambia (BoZ) regulation over the new minimum capital which for local banks is at US$20 million with foreign banks needing $100 million.

“We are adequately prepared to meet the new regulatory capital requirement. Our current levels of capitalisation are adequate for new requirements for either local or foreign banks as defined by the Bank of Zambia,” he said.

He said the bank’s distribution network was bullish and commanded a market share of 44 per cent while the 18 other banks were having the remaining 56 per cent market share.

Zanaco has 189 points of representation with its next competitor standing in distant second with less than 60.