-The following is an extract of SENS announcement by Company Secretary Sandra Malupande by order of the Board issued in Lusaka, Zambia on 25 August 2020
Income statement
The financial performance of the Group has continued to improve year on year with the Group and Bank recording profit after tax of ZMW14.3million compared to a profit of ZMW5.6millon in the half year ended June 2019.
The Group recorded operating income of ZMW 396.4 million in the current HI compared to ZMW 331.4 million recorded in prior H1 of FY2019 representing a growth of 16%.
The Bank recorded operating income of ZMW 342.6 million in the current HI compared to ZMW 283.8 million recorded in prior H1 of FY2019 representing a growth of 21%.
Balance sheet
The Group has reported a growth in the loan book 44% when compared to the position as at 30 June 2019.This is mainly attributed to the loan issued to Ministry of finance under the farmer support programme.
The Groups borrowings have grown by 167% attributed to the intake from third party lines under TDB (ZMW 727 million) and the Funds from Bank of Zambia (ZMW 533 million) to support the COVID 19 support programme.
The Bank has recorded no negative impact on capital as a result of the COVID-19. However, the excess of total regulatory capital over the minimum total capital requirement (K520 million) has increased due to normal business positive performance and once off impairments release following the implementation of the revised Classification and Provisioning Directives, 2020.
Covid19 mitigation
BancABC has implemented a laid down health safety protocol governing rules relating to face masks, social distancing, body temperature checks at entrances, regular cleaning of touch points with bleach, hand soap & water and availability of sanitisers at places of work at all times including the branches that are open to the public. The Bank also successfully implemented the rotational and work from home strategy to minimise the exposure of staff to covid19 and intensified leave plan.
Outlook
The group is poised to leverage on its digital offering to drive robust deposit and transactional growth.
