Staff Writer
HARARE, ZB Financial Holdings (ZB) says its insurance unit ZB Life Assurance is working on a new retail insurance system to replace the old Premia system, and the project is expected to be finalised in FY2024.
The unit posted a profit of ZiG333.579 million in the half year to June 30, 2024, compared to ZiG632,489 billion in 2023, and total assets increased in real terms from ZiG752,995 million as of 31 December 2023 to ZiG984,225 million as of 30 June 2024.
On the other hand, ZB Reinsurance posted a net loss after tax of ZiG52,861 million in 2024 compared to ZiG146,206 made in 2023, and its total assets increased in real terms from ZiG328,914 million as of 31 December 2023 to close the half-year 2024 at ZiG237,056.
During the half-year period, the group’s insurance service result slightly improved by 3%, from a deficit of ZWG236.737 million in 2023 to a deficit of ZWG228.568 million in 2024, largely as a result of an increase in claims.
In terms of overall group performance, despite a 60% decline in profit after tax, the group maintained profitability, posting a profit after tax (PAT) of ZWG1.06 billion in June 2024 from ZWG2.68 billion in June 2023.
In the period under review, the group recorded a 41 percent decrease in total income from ZiG2,175 billion in 2023 to ZiG1,275 billion.
Shepard Fungura, the group’s chief executive, said the income performance continued to be mainly underpinned by fair value adjustments despite the income line decreasing by 95 percent to ZiG95,6 million from ZiG1,855 billion in 202.
“Performance was also supported by a 27 percent decrease in other operating income, from ZiG1,255 billion in 2023 to ZiG913,94 million, as well as a 28 percent increase in commissions and fees, from ZiG275,324 million in 2023 to ZiG353,007 million,” he said.
The group’s net interest income for the interim period rose by 20 percent to ZiG209,977 million from ZiG174,948 million in 2023, and net expected credit losses decreased 75 percent, from ZiG36,235 million in 2023 to ZiG 9,206 million in 2024 due to recoveries made during the period under review.
“Resultantly, net income from lending activities rose by 45 percent to ZiG200,771 million from ZiG138,695 million in 2023,” said Fungura.
Meanwhile, the group’s total assets increased by 4 percent in real terms, from ZiG8,772 billion as of 31 December 2023 to ZiG9,143 billion as of 30 June 2024.
