By Stephen T Chifamba
BancABC reported a 39 percent growth in its loan book for the year ending December 31, 2024, driven mainly by new loans and revaluation of old loans, the bank said.
Albert Katsande, chairman of BancABC said the bank’s balance sheet remained well diversified as foreign currency, denominated loans represent roughly 90 percent of total lending, driven by robust demand for dollar financing.
This saw loans and advances expand by 39 percent to ZiG 1,4 billion, fuelled both by new disbursements and the exchange rate effect on legacy facilities. On the liabilities side, foreign currency deposits account for 83 percent of customer funds, reflecting client preference for stability amid presumed ZiG volatility.
“At year end, the group’s total assets stood at ZiG 5,3 billion, down 31 percent from ZiG 7,6 billion,” Mr Katsande noted, explaining that inflation adjustments outpaced exchange rate movements.
While global trade tensions and tighter domestic liquidity pose headwinds, BancABC maintained rigorous credit standards. “In response to the tightening liquidity environment, the Group continued to exercise prudent lending practices, prioritising the maintenance of adequate cash flows to meet customer demands,” Mr Katsande affirmed.
This disciplined approach underpinned a liquidity ratio of 62 percent, more than double the statutory minimum of 30 percent, and a capital adequacy ratio of 42 percent, well above the 12 percent regulatory threshold.
A significant proportion of BancABC’s 2024 capital expenditure was allocated to upgrading its IT infrastructure. “To propel digital transformation, the group has made significant IT investments and system upgrades, enhancing customer experience, strengthening transactional platforms, and facilitating seamless foreign currency transactions in a highly dollarised environment,” Mr Katsande said.
The bank’s network of digital kiosks nationwide has driven up adoption of online and mobile channels, positioning it to capture the financial inclusion agenda and reduce reliance on branch-based transactions.
Under Mr Katsande’s stewardship, BancABC has steered its core activities toward strategic sectors that can drive sustainable growth.
“The Group is encouraged by the progress made in establishing strategic partnerships in key sectors of the economy, including mining, agriculture, insurance sectors and other financial service providers,” he remarked.
These alliances provide trade finance and working capital solutions to mining houses benefiting from record‐high gold prices, agribusinesses recovering from drought, and insurers navigating a more volatile risk landscape.
On an inflation-adjusted basis, the group reported a loss of ZiG 472 million, compared with a profit after tax of ZiG 1,0 billion in 2023, primarily due to net monetary position losses and fair value adjustments on investment properties. However, excluding these accounting distortions, the bank delivered a profit after tax of ZiG 614 million.
“These results demonstrate the Group’s robust financial foundation and commitment to maintaining a prudent capital and liquidity position,” Mr Katsande emphasized.
Looking to 2025, BancABC expects liquidity to remain tight, supporting exchange rate stability but potentially slowing lending growth.
“Tighter liquidity conditions are expected to persist and will support exchange rate stability. However, this may also lead to a slowdown in lending activities,” Mr Katsande warned. Nevertheless, he pointed to an anticipated above-normal 2024/25 rainfall season that should bolster agricultural output and hydroelectric generation, translating into renewed credit demand in rural and commercial farming sectors.
Beyond its core banking activities, BancABC has deepened its commitment to environmental, social and governance (ESG) principles. The bank’s CSR arm in 2024 supported projects ranging from empowering young mothers with solar‐powered sewing machines to funding agricultural inputs for women-led cooperatives.
“Our five year strategic agenda will prioritise further investments in ICT, process optimization, cultural transformation, and increasing share of market deposits, taking cognisance on ESG guidelines to ensure the group’s sustained competitiveness and long-term success,” Mr Katsande stated.
As BancABC charts its path forward, the bank’s core activities of lending, deposits, payments and transaction services, remain central to its strategy. Bolstered by a fortified capital base, high liquidity ratios, and continuous digital innovation, the group is well positioned to support the country’s economic recovery and capture growth opportunities across key sectors.
“I am proud of the group’s resilience and adaptability in navigating the complexities of 2024,” Mr Katsande concluded. “The board and management are confident that the group is well-positioned for continued success.”
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