Izwe Loans Zambia – Izwe has maintained excellent revenue momentum from the 2017 results by posting gross revenues amounted to K446.2 million (about US$37 million), a significant and notable growth of 32% compared to the previous year 2017. The micro lender further increase in after tax profits in 2018 by 49% to K141 million (2017: K95 million).
In a security note availed to the Zambian Business Times – ZBT, Izwe Chief Executive Officer Dr. Brian Malambo stated that “the 2018 performance is a testament to the ability of the company to ensure sustainable future growth and is as a result of our products remaining relevant, our continued focus on quality customer service and interactions with customers to ensure alignment to their needs”.
However, Dr. Malambo stated that the lenders operating expenses increased by 44% from K56 million to K81 million. He attributed the expense growth in staffing, collection costs and investment in the technology infrastructure to provide an enabling customer experience.
The credit loss expenses increased to K29 million (2017: K15 million) which he attributable to both the growth in the loans and advances book, and the adoption of IFRS 9 impairment models. Exchange losses decreased 56% year on year despite the Kwacha depreciated against the USD in 2018 as Izwe paid down part of the USD denominated liabilities during the year resulting in lower foreign exchange hedging costs.
Dr. Malambo further stated that “the gross loans and advances book recorded another year of growth increasing by 36%, ending the 12-month period at K967 million (2017: K709 million). The quality of the advances book remains satisfactory due to strict adherence to credit policies, conservative credit evaluations and effective collections management”.
