Izwe Loans Zambia Plc has maintained excellent momentum in the 2017 results by posting an increase in after tax profits in 2018 of 49% to K140.8 million compared to K94.5 million recorded in 2017.
In an audited financial results for the year 2018 posted on Lusaka Securities Exchange (LuSE) monitored by Money FM News crew, the firm’s gross revenues amounted to K446.2 million, a significant growth of 32% compared to the previous year.
Izwe Loans Zambia Plc Chief Executive Officer Brian Malambo says operating expenses increased by 43.5% from K56.2 million to K80.7 million.
Mr. Malambo says growth in staffing, collection costs and investment in its technology infrastructure to provide an enabling customer experience are the main drivers for the increase in costs.
He says the credit loss expenses increased to K29.3 million compared to K14.8 million recorded in 2017 which is attributable to both the growth in the loans and advances book, and the adoption of IFRS 9 impairment models which is a global financial industry standard.
“Exchange losses decreased 56% year on year to K11.5 million (2017: ZMW 26.4 million). Although the Kwacha depreciated against the USD in 2018, the reduction in exchange losses relates more to the pay down of USD denominated liabilities during the year resulting in lower foreign exchange hedging costs,” he disclosed.
Mr. Malambo said the gross loans and advances book reflected another year of growth increasing by 36%, ending the 12-month period at K967.2 million compared to the K709.4 million recorded in 2017.
“The quality of the advances book remains satisfactory due to strict adherence to credit policies, conservative credit evaluations and effective collections management. Total borrowings and corporate notes, current and non-current, increased to K673 million representing a 44%, attributable to additional funding required to finance the growth in total loans and advances,” he said.