Indo Zambia Bank (IZB) has reported an increase in its operating profit by 57.97 percent, with returns standing at K826 million in 2022.
The bank also posted an increase in its profit after tax by 82.70 percent, with returns quoted at K509 million in 2022 compared to K279 million recorded the previous year.
Bank’s Chairman Micheal Gondwe said they had another successful year in 2022 due to the bank’s innovativeness, customer centric culture and investments in digital infrastructure.
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Gondwe also said the Small and Medium Enterprises (SMEs) segment and retail banking have resulted in long-term profit generation, leading to strong overall financial performance for the period.
He said this during a presentation of a cheque dividend of K40 million to its shareholder, the Industrial Development Corporation (IDC) in Lusaka on Friday.
“With this performance, we are on course to generate better returns for our shareholders while also laying the groundwork for future value creation.
“We will have enhanced dividend distribution capability in the future as a result of improved returns and capital retention,” he said.
In the period under review, Gondwe said the bank reported an increase in revenue by four percent.
He said this was led by growth in business volumes of the bank despite the reduction in yield on advances and investments.
Gondwe indicated that the bank’s loan book rose by 41.06 percent, mostly due to SME and retail loans, as well as the loans in the agricultural, mining, social and manufacturing sectors.
In addition, the bank’s deposit based increased by 28.85 percent to K10.054 billion in 2022 compared to K7.802 billion the prior year.
He said as a result of the good performance, the bank would pay K100 million in dividends, an increase of 25 percent above the K80 million in 2021.
Speaking earlier, IZB Managing Director Kowdichar Shashidhar indicated that they have effectively transformed the bank over the past years.
Shashidhar said they had focused on business activities on the core capabilities and have become much profitable, balanced and cost effective.
Commenting on the development, IDC Acting Group Chief Executive Officer, Lizzie Mukwasa, said the banking sector was one of the sector that had remained resilience during the Covid-19 pandemic.
Mukwasa said the lingering effects of the pandemic in various markets, inflation and the prospects of a recession in the major markets meant that this particular sector had to be agile.
She said during this period of volatility, uncertainty, complexity and ambiguity, the banking sector has to place innovation at the center of strategies to better serve customers.
“Banks had to reassess market risk exposures, revaluate various operations, implement sanctions, strengthen its cyber resilience and most importantly adapt to evolving regulatory environment.
“Amid a tightening of credit availability on the market, it is commendable that IZB and its board managed to demonstrate resilience and a strong performance.
“I would like to commend the bank for recording an increase in profits for the year by 83 percent. This is a remarkable achievement and deserves to be highlighted,” Mukwasa said.
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