ZB in massive land bank acquisition

Published: 15 August 2017

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.
- dailynews

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