LUSAKA (Reuters) – Zambia National Commercial Bank’s (ZANACO) profit after tax jumped five-fold to a record-breaking 1 billion kwacha ($55.56 million) in 2021 from about 200 million kwacha the previous year, its CEO Mukwandi Chibesakunda said on Wednesday.
Chibesakunda attributed the bumper profit to an expanded customer base and almost doubling of its national network of agents that use mobile booths for the public to access bank transactions to 17,000 members from 10,000 in 2020.
“We recorded the highest profit after tax in the history of the bank and the industry,” Chibesakunda told journalists after the bank’s annual general meeting.
The bank has targeted, mainly, people without bank accounts who can still transact through fixed and mobile agents using digital technology, including mobile phones. The agents include those operating from fixed booths provided by the bank and others with other established businesses such as shops.
Chibesakunda said the 52-year-old bank plans to invest in upgrading its operating and technology systems, as Africa’s second biggest copper producer negotiates a $1.4 billion three-year extended credit facility with the International Monetary Fund.
“We believe we are well positioned to embrace digital and sustainability developments to compete strongly and transform the face of banking in Zambia,” Chibesakunda said.
ZANACO board chairman Hastings Mtine said later in a statement that the board recommended a dividend increase to 364 million kwacha for the 2021 financial year from 82 million kwacha in 2020.
Mtine said the bank declared a dividend of 0.252 per share in 2021 from 0.057 per share in 2020.
“Innovation and digitalisation will remain a priority for the bank,” Mtine said.
($1 = 18.0000 Zambian kwachas)
(Reporting by Chris Mfula; Editing by Wendell Roelf and Sandra Maler)
