Zambia National Commercial Bank (LUSE: ZANACO) reported a 23% year-on-year decrease in net profit to K143 million in financial year (FY) 2014. Earnings per Share (EPS) came in at K0.017 (K0.02 in 2013):
The decrease in net profit was primarily as a result of changes to the Statutory Reserve
Requirement by the Bank of Zambia in Q1 2014 which forced it to sell its portfolio of Government securities. Consequently ZANACO took a K104 million loss on the disposal due to adverse market prices at the time.
However, profit before exceptional items was up 20% year-on-year to K318 million in FY 2014.
The Bank experienced revenue growth of 16% year-on-year to K972 million in FY 2014:
This was driven by an 8% and 14% year-on-year growth in the loan book and commission income, respectively.
ZANACO’s stock price closed the year at K0.28, down 6.67% in 2014.
A final dividend of K0.05 per share was recommended for FY 2014.
In their outlook for 2015, the company said:
With our robust strategy put in place, coupled with motivated and committed staff, our wide distribution network, state of the art IT platform and support from our customers and partners, we are well placed to make 2015 just as successful and even better than 2014
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *