ZB Holdings has announced a significant leap in profit for the first quarter of 2024, with a staggering 78 percent growth in inflation-adjusted profit after tax, reaching $967,557 billion compared to the same period last year.
The remarkable surge in profit followed a substantial increase in inflation-adjusted total income, which soared by 120 percent to $2,347 trillion during the first quarter of 2024.
Highlighting this exceptional growth, ZB Holdings attributed the surge primarily to a remarkable 214 percent increase in fair value credits and foreign exchange income. This surge underscores significant adjustments made to asset values in response to a dynamically evolving operating environment.
Additionally, sustainable trading income witnessed a robust 53 percent increase, further buoyed by a notable 69 percent rise in non-funded income.
Addressing the company’s strategic direction, ZB Holdings emphasized its commitment to generating sustainable earnings and implementing cost-containment measures in the short to medium term.
Despite the implementation of stringent cost controls, inflation-adjusted total expenses rose by 30 percent, from $573,422 billion in the first quarter of 2023 to $745,622 billion during the same period in 2024.
While inflation-adjusted assets experienced modest growth of 2 percent, reaching $21,792 trillion as of March 31, 2024, this growth was largely attributed to the tightening of monetary policy by authorities, which constrained deposits mobilization and credit creation for the group.
However, despite these challenges, ZB Holdings maintained a robust average liquidity ratio of 60 percent and successfully kept non-performing loans below the regulated 5 percent benchmark.
The company’s total equity exhibited an upward trajectory, rising from $9,476 trillion as of December 31, 2023, to $10,444 trillion by March 31, 2024, driven by the period’s robust performance.
Despite the positive financial indicators, ZB Holdings refrained from declaring dividends for the quarter under review.
Looking ahead, ZB Holdings acknowledged the prevailing economic challenges, including a projected decline in annual gross domestic product growth and an anticipated El Niño-induced drought. Despite these obstacles, ZB Holdings reaffirmed its resilience and dedication to delivering value-adding financial solutions to the nation, positioning itself well to navigate the challenging economic landscape ahead. – Herald
