Maravi

Zanaco projects more growth for banking sector

Zanaco projects more growth for banking sector
By Ndinawe Simpelwe
Tue 05 Apr. 2011, 04:00 CAT

ZANACO Plc says growth in the banking sector is expected to continue this year, spurred by increased productive sector and payroll-based consumer lending. And Zanaco says it has no plans of introducing Islamic banking despite having a good number of Muslim clients on its network.

During a press briefing in Lusaka yesterday, Zanaco managing director Martyn Schouten said he was optimistic that the growth in the sector would be achieved and sustained despite experiencing difficulties in the first three quarters of 2010.

He said the bank had already recovered from the economic slowdown in the first three quarters of last year since high growth rates were recorded in the fourth quarter of 2010.

“We expect the trend to continue in 2011. Growth rates will be spurred by increased productive sector and payroll based consumer lending,” he said.

Schouten said there would be increased GRZ spending, improved deposit formation, high transactional services opportunities and improved credit underwriting standards resulting in reduced levels of non performing loans.

Schouten further projected a 30 per cent growth of the banking sector in 2011.

He said the growth would be sustained mainly by high Gross Domestic Product growth rate.

Schouten said the demand to take banking to unbanked areas would also help in the growth of the sector. According the Finscope survey of 2009, about two thirds of the Zambian population is not banked. And Schouten said the bank would continue to do business with Muslims until the demand for Islamic banking was made.

“Many Muslims are our clients but there has never been that overwhelming request from anyone to introduce Islamic banking,” Schouten said.

And Zanaco recorded an after tax profit of K113 billion in 2010.

Schouten said the profit represents a 40 per cent increase compared to K82 billion recorded in 2009.

Labels: BANKING, ZANACO

posted by MrK @ 5:03 AM