Zambia’s banking industry reportedly returns satisfactory score in 2023

Strong capital adequacy position supported Zambia’s banking industry which reportedly remained satisfactory in 2023.

This reflected the sector’s resilience and capacity to absorb unexpected losses, according to the Bankers Association of Zambia (BAZ) Public Relations and Administrative Officer, Mirriam Zimba.

Zimba explained that the primary capital adequacy ratio was at 23 percent, and total regulatory capital adequacy ratio was at 23.7 percent as at end October, 2023,

Responding to a press query, Zimba stated that this was well above the minimal regulatory benchmarks of five percent and 10 percent, respectively.

“This strong capital position is well supported by the continued profitability through retained earnings. In the month under review, the sector continued to be profitable and recorded a profit before tax (PBT) of K1,024.8 million, which is 9.9 percent higher than the previous month’s PBT,” she said.

According to Zimba, the profit was primarily attributed to interest income from loans and advances as well as government securities.

“The demand for government securities remained strong in October, despite the subscription rates for both Treasury Bills and government Bonds moderated to 126.3 percent and 124.6 percent from the previous 159.3 percent and 170.4 percent, respectively,” she said.

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