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Zanaco Bank Chief Executive Officer: Bruce Dick


Outlook for 2016
The headwinds in the economic environment, the uncertain weather pattern, and more specifically, the market challenges relating to regulatory, funding, and competitive pressure, will remain the most significant risks in the operating environment. The tight monetary policy stance, weak Kwacha, and high interest rate environment is likely to remain for the most part of 2016, thus exerting further pressure on most of our customers’ capacity to service their banking obligations.

Although the market Non - Performing Loan (NPL) ratio had been trending downwards from the mid-teens in the past few years, from Quarter 3 of the year under review, we have seen signs of pressure, and the change in the trend direction of the NPL ratio. Clearly, we anticipate this scenario in the market to continue as high interest rate pressure settles on lending portfolios. Our focus on the transformation journey will remain firm, and we shall continue to support our valued customers through these challenging times, whilst maintaining a robust risk management profile. This transformation journey is a major milestone for the Bank because it is the first of its size and complexity in a very long time. Indeed, it will have significant financial implications in the short term, but it will also help to re-position Zanaco in its rightful place in the market, as the “Big, Strong, and Reliable” one.

2015 annual report

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