ZANACO-Summary of 2015 Year-end Results

SENS ANNOUNCEMENT
(the “Notice” or “Announcement”)
ISSUER
ZAMBIA NATIONAL COMMERCIAL BANK PLC (“ZANACO”)
[Incorporated in the Republic of Zambia]
Company registration number:
Share Code:
ISIN:
Authorised by:
5387
ZANACO
ZM0000000250
Mr. Bruce Dick – Managing Director
SPONSOR
Stockbrokers Zambia Limited
[Member of the Lusaka Stock Exchange]
[Regulated and licensed by the Securities and Exchange Commission of Zambia]
Contact Number:
Website:
+260-211-232456
www.sbz.com.zm
APPROVAL
The captioned Notice or Announcement has been approved by:
i. the Lusaka Stock Exchange
ii. the Securities and Exchange Commission
iii. Stockbrokers Zambia Limited
DISCLAIMER AND RISK WARNING
The Notice or Announcement contained herein contains information that may be of a price sensitive nature.
Investors are advised to seek the advice of their investment advisor, stockbroker, or any professional duly licensed by the
Securities and Exchange Commission of Zambia to provide securities advice.
FIRST ISSUED: 07 March 2016
Zambia National Commercial Bank Plc
Company Registration Number: 5387
Share Code: Zanaco
ISIN:ZM0000000250 (Zanaco)
Summary Results for the Year Ended 31 December 2015
In compliance with requirements of the Securities Act Cap 354 of the Laws of Zambia and Listing Rules of the Lusaka Stock Exchange, the Directors
are pleased to announce the Bank’s results for the year ended 31 December 2015
Condensed profit and loss account
Total income
Profit before income tax and extraordinary items
Tax charge
Profit attributable to Shareholders before
extraordinary item
Extraordinary items (net of taxation)
Profit after extraordinary items
Number of shares during the year (millions)
*Earnings per share
2014
1,067,700
972,116
The financial performance of the Bank in the period under review
was challenging mainly due to:
184,853
213,557
•
Rising cost of funds due to tight liquidity conditions in the
market resulting from measures taken by the Central Bank
to address the rising inflationary pressures and stabilise
exchange rate. This was compounded by a slowdown in
consumer lending as a result of rising interest rates mainly
driven by an increase in monetary policy rate.
•
Increase in operating expenses as a result of depreciation
of the Kwacha.
•
Overall escalating cost of doing business.
(67,344)
(70,631)
117,509
142,926
-
-
117,509
142,926
1,444
8,663
0.08
0.02
Condensed Financial Position
Assets
Capital
Cash and Balances with Bank of Zambia
1,626,539
1,163,202
Loans and advances to banks
1,119,496
399,170
Loans and advances to customers
3,446,554
3 ,138,509
Investment securities
1,182,626
1,445,340
Property, plant and equipment
270,055
274,635
Other assets
300,502
242,947
Total assets
7,945,772
6,663,803
6,033,085
5,053,862
198,759
118,125
10,206
32,440
Borrowed funds
663,438
458,270
Total liabilities
6,905,488
5,662,697
1,040,284
1,001,106
7,945,772
6,663,803
Cash flows from operating activities
629,177
391,195
Changes in operating assets and liabilities:
234,275
(239,826)
Cash flows from investing activities
(48,568)
(23,176)
Cash flows from financing activities
(60,995)
(2,805)
Net increase/(decrease) in cash and cash equivalents 753,889
125,388
Cash and cash equivalents at beginning of year
996,252
870,864
1,750,141
996,252
Liabilities
Deposits
Other liabilities
Deferred tax liability
Shareholders' funds
Total liabilities
Condensed cashflow statement
Cash and cash equivalents at end of year
Condensed consolidated statement of changes in equity
Balance at the beginning of the year
1,001,106
867,620
Change in other comprehensive income
(35,018)
33,873
Profit for the year
117,509
142,926
Dividend paid
(43,313)
(43,313)
1,040,284
1,001,106
Balance at end of year
Financial Highlights
2015
During the period under review, the Bank remained well capitalized
above the minimum required ratio of 10%. The shareholders’ funds
increased by 4% compared to December 2014.
Future Outlook
The tight liquidity conditions are expected to remain a challenge
during 2016. This will continue to drive the cost of funds up. Inflation
is also expected to remain high, particularly in the first half of 2016,
but decline as the year progresses. The Bank will gain
competitiveness by delivering superior customer service, value
proposition and efficiency in its operations.
Our commitment in 2016 will be to continue to drive the changes
needed in the organisation through a transformation journey,
focusing on the following:
•
Bringing the structure and branches in line with our strategy
•
Aligning the processes with the new structure and ways of
working
•
Further improving the quality of services provided to our
customers
•
Further improving our risk management standards
•
Raising our operating and financial efficiency
•
Enhancing the performance culture and aligning
compensation and reward system with strategy and new
ways of working.
BY ORDER OF THE BOARD
Note
The financial statements have been prepared in accordance with the International financial
reporting standards (IFRS).
*The Bank consolidated its shares at a ratio of 6 to 1 in March 2015. Therefore, the earnings per
share (EPS) for 31 December 2015 reflect the effect of the share consolidation. The effect of the
share consolidationon on the 2014 earnings per share would be K0.10 per share.
LUSAKA STOCK EXCHANGE SPONSORING BROKER
STOCKBROKERS ZAMBIA LIMITED
[MEMBER OF THE LuSE AND REGULATED BY THE
SECURITIES AND EXCHANGE COMMISSION OF
ZAMBIA]
T: +260-211-232456 W: www.sbz.com.zm