LISTED financial services group, ZB Financial Holdings (ZBFH) has seen a huge decline in both profit margins and net income largely owing to the decrease in fair value credits among other factors.

Presenting the group's performance for the six months ended June 31, 2021, ZBFH's newly appointed chief executive, Shepherd Fungura said the declines were prompted by external factors.

"The group recorded a 29, 8% decline in total income from $4,128 billion for the period to June 30 2020 to $2, 8 billion for the comparable period.

"The decline in revenue performance was mainly underpinned by a 67% decrease in fair value credits, from $1,571 billion in 2020 to $519 million in 2021 and an 80 % decline in other operating income from $1,706 billion in 2020 to $336 million in 2021," he said.

"The group posted a net profit of $785 million in 2021, representing a 66,2% decline from the $2,320 billion attained in 2020," said Fungura.

Banking operations profits posted declined by 66,4%.

Despite the declines, the group remained vigilant, posting a net interest income that rose by 148,6%, from $366 million in 2020 to $909 million in 2021, whilst banking commissions and fees also rose in real terms by 115,6%, from $533 million in 2020 to $1,15 million in 2021.

Net insurance-related earnings rose from $116 million to $239 million in 2021, on the back of a favorable claims experience.

Gross premiums increased by 18, 4% whilst there was a 3,1% decrease in insurance-related expenses.

"The group is progressing the digitalisation agenda in order to enhance its operational efficiencies and most importantly, offer improved service delivery to its customers," added Fungura.

Copyright New Zimbabwe. Distributed by AllAfrica Global Media (allAfrica.com)., source News Service English