Home » Industry » ZB Braces for g Performance

ZB Financial Holdings is bracing for a g performance in the coming year and beyond as the raft of measures it implemented during the current year begin to bear fruit. “In 2015 and the future, ZBFH will be a learner, more focused and profitable business capable of competing with its peers in the market,” the group said in a statement. This comes as it the bank’s performance and profitability has begun to improve as it concludes the restructuring exercise.

“In the last two months, the group’s performance has improved and this has seen it posting operating profits on a month-on-month basis,” the group said.

As part of the restructuring exercise ZB wound down the operations of its stockbroking arm ZB Securities and asset management unit, ZB Asset Management Company, with the exercise almost complete..

The disposal of the two units, according to the group resulted in savings on expenditure related to staff occupation and regulatory requirements.

Other measures included the cleaning up of its banking group’s loan book, as the unit was not spared from the scourge of non-performing loans.

“The board decided to clean up the bank’s loan book during the year. This clean-up process has resulted in an increase in the provisioning figures for the bank’s non-performing loans.

“The outcome is that the bank’s income statement and consequently the group’s profit and loss account took a big dent this year,” he said.

In addition the group also undertook a staff resizing exercise and also outsourced security and cleaning requirements.

“The board has realigned the group’s business to match current economic realities. The exercise is almost complete and is expected to yield reductions in costs.

“The measures undertaken by the group have resulted in it incurring costs above the norm, in running the business. However, all the costs are of a once-off and non-current nature,” the group said.

Apart from restructuring the group is also aiming to develop its 260 stands across the country through its building society, ZB Building Society.

About 10 cluster homes have been earmarked for Harare’s Hatfield suburb, 150 stands in the border town of Beitbridge and 100 stands in Springvale located on the outskirts of Harare along Mutare road in Ruwa.

Source : The Herald