Izwe a subsidiary of the Izwe Africa Group, an international financial solutions group that operates in Zambia with its headquarters are located in Mauritius, has posted about K200 million profit after tax for the year ended 2023.
Despite these hefty profits, some customers have questioned the institutions business practices in Zambia and the jury is still out if their operations are above board.
According to the audited financial statement seen by the Zambian Business Times – ZBT, Izwe exceeded its profit after tax estimate for the year 2023 increasing by 44% to ZMW190 million compared to a profit after tax of ZMW132.0 million reported in the prior year.
The Company’s gross revenue in the Zambian market also has balooned by 37% to ZMW600.1 million attributed to an increase in customers.
“The Company continued to diversify its funding sources, with borrowings increasing by 79% to ZMW1.0 billion to fund the increase in demand from clients.”
“As a result, there was a marked increase of 87% in interest expenses from K60.5 million in 2022 to K113.1 million in 2023.”
Menawhile, Izwe’s impairment losses has drastically reduced from K50 million in 2022 to K2.3 million in 2023, with large portions of the arrears book having been successfully cured.
“Izwe exceeded its profit after tax estimate for the year 2023 increasing by 44% to ZMW190 million compared to a profit after tax of ZMW132.0 million reported in the prior year.”
“This represents an increase of 50% in earnings per share to ZMW1.94 and an increase in return on equity from 34% to 40% year-onyear. Year on year, the Company recorded an increase in operating cashflows, in line with the increase in loans disbursed.” According to financials.
