Source: ZB in massive land bank acquisition – DailyNews Live
BUSINESS WRITER 12 August 2017
HARARE – Listed financial services group ZB Financial Holdings has
embarked on a massive acquisition of land across the country to support
strategic growth.
The group chief executive officer, Ronald Mutandagayi, disclosed on
Wednesday this week that ZB has been splurging cash on land and has
budgeted a total of $10 million to be used in the next 48 months towards
the acquisition of more land.
ZB is also negotiating with Nairobi-headquartered pan African financier,
Shelter Afrique for a $15 million line of credit to go towards housing
projects.
“The acquisition of land remains a focus area. We believe this is an area
that will be a source of strategic growth in the future,” said
Mutandagayi.
“The group has acquired 708 stands in Plumtree and is also in the process
of finalising the acquisition of 678 stands in Kadoma.
Negotiations with Bindura Town Council, Zvimba Rural District Council,
Marondera Town Council, Masvingo City Council and Kariba Town Council are
in progress.
“Springvale housing project in Ruwa is now almost sold out. The group is
attending to a few project contingencies before complete hand over.
Selling of 150 stands in Beitbridge will commerce in the third quarter of
2017,” said Mutandagayi.
ZB’s financial statements for the six months to June 30, 2017, which were
released this week, show that the financial institution posted a 38
percent increase in profit to $8,17 million from $5,94 million the
previous comparative period.
Revenue went up 17 percent up to $34,47 million from $29,39 million
recorded in the previous half year period.
Total expenses during the period under review increased by 10 percent to
$23,92 million, from $21, 83 million during previous half year period due
to increased business acquisition costs and amortisation of investment in
technologies.
Total assets went down by two percent during the period under review to
$430,8 million from $439,3 million in 2016 due to a decrease in cash and
cash equivalent balances sue to cash shortages.
Treasury Bills went down one percent to $117,2 million during the period
under review from $118,6 million during the same period the previous year
as short-term instruments matured.
Deposits in the bank went down by six percent to $259,8 million, from
$275,3 million in 2016.
The group’s non-interest income ratio went up to 77 percent during the
period under review compared to 68 percent during the same period the
previous year.
The net interest income ratio went down to 23 percent during the review
period, from 32 percent in the first half of the previous year.
Cost to income ratio improved to 69 percent during the period under
review, from 74 percent reported in previous year due to improved revenue
outturn.
Liquidity ratio was 72 percent from 75 percent. The minimum regulatory
requirement is 30 percent.
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