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ZB Bank declares dividend


Business Reporter
The ZB Board resolved to declare a slightly over 144 cents per share dividend citing return on investment, bank commission and fees as major contributors as announced in the company’s 2021 financial statement.


“The board has declared a dividend of ZW144.93 per share for the year ended 31 December 2021. A separate dividend notice will be published to this effect.” P Chirimo the company’s Chairman said.
The bank realised over 120% in income growth mainly due to improved non funded income, banking commission returns.


“For the year 2021, the group recorded a 122% increase in total income from ZW5.288bn in 2020 to ZW$11.736bn. This performance outturn was on the back of an improved non funded income. Banking commissions, and fees contributed significantly rising by 83% from ZW$1.836 in 2020 to ZW$3.366bn in 2021.” The groups CEO, also emphasised.
Improved stock exchange and investment property saw an increase in the fair value adjustments for the financial firm.


“The fair value adjustments increased by 1526% from ZW$0.218bn in 2020 to ZW$3.548 bn in 2021 mainly as a result of improved performance of the Zimbabwe Stock Exchange and Investment property valuations.” Mr Fungura also said.


Also of note, “Meanwhile, the group’s total assets increased by 66% in real terms, from ZW30.504 as at 31 December 2020 to ZW$50.493bn as at 31 December 2021. The growth rate remained however below average inflation.” Mr S T Fungura the Group Chief Executive Officer emphasised.


The company forecast’s a generally stable economic environment owing to policy and fiscal discipline potentially being underlined by the harmonised elections and civil service bills.


“The inflation outturn is expected to continue improving in 2022 supported by a tight monetary policy, complemented fiscal discipline. However, the slow -down in inflation remains under threat from possible expansion in the monetary base to find obligations such as civil service wage increases and the 2023 harmonised elections, the widening gap between the formal and alternative market exchange rates, among other factors.” The ZB board Chairman P Chirimo also said.


The bank is yet to meet it’s capital obligations for it’s building society as it has been working on consolidating its division’s into one by 2021 a position expected to be finalized by 2022.


“As at 31 December 2021, all group companies, with the exception of ZB Building Society, were in compliance with prescribed minimum capital requirements. The target was to finalize consolidation of the group’s banking operations, that is #ZB Bank Limited, ZB Building Society, and Intermarket Banking Corporation by 31 December 2021, but the transaction has taken longer than anticipated, and is now scheduled to be completed in 2022.” P Chirimo also said.


The company also saw close to 100 percent increase in asset returns while the corporate’s asset also realised an increase despite falling shot of the average inflation rate.
“Earning assets increased by 80% from ZW16.074bn attained in 2020 to ZW$28.127bn as at December 2021 whilst constituting 57% of total assets, (53% at 31 December 2020).” Fungura reiterated.


The financial statement was prepared considering the inflationary tends as called for by the international Accounting Standards(IAS-29)- Financial Reporting in hyperinflationary environment.

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