ZB Financial Holdings disposes of two properties

Published: 27 June 2014

Two ZB Financial Holdings companies have been let go by the group after low performance with no hope of clear sign of turning profits.

Addressing the group's AGM Non-Executive Director Tendai Mafunda said they decided to let go of ZB Securities and ZB Asset Management Company as they were consistently recording losses.

"Management recently decided to dispose the group's stock broking unit, ZB Securities and the asset management unit ZB Asset Management Company. Both Companies have been posting losses for some time and a return to profitability did not appear eminent for either company" he said.

He added that management has taken vital actions to cut costs.

"Management has embarked on a vigorous cost cutting exercise while also attending to areas that enhance revenue inflows," he said.

He said that the group has been faced with liquidity limitations resulting in constrained business output.

"Liquidity has remained a major challenge during the first half of the year, consequently business output has generally been constrained" said Mafunda.

The group saw a slight increase in its balance sheet as well as trading revenue, however a decline in overall outturn.

"The group's balance sheet has increased marginally by 2 percent as at the end of May 2014 from the levels achieved as at 31 December 2013.

"Trading revenue increased by 3 percent however a depressed outturn on the equity portfolio has had a significant negative impact on overall outturn to date with the result that the group is operating at slightly below breakeven level after accounting for the unrealised loss on investments" he said.

Mafunda said there has been marginal management in costs and currently performance is below targets.

"Costs have been managed at 2 percent below the 2013 levels and our performance as a group so far is below the operational targets." said Mafunda.
- BH24