This initiative helped the bank towards boosting its net profit by a staggering 1003% in 2007. This is all the more impressive since 2006 was a poor year for the bank, during which it experienced a 92% drop in net profit growth. Assets at the bank grew 52% in 2007 and Tier 1 capital was bolstered by 48%.
The bank increased its return on equity from just 7% in 2006 to 36% in 2007. Barclays Bank Zambia has shown a dogged determination to come back from a poor year in 2006 and capture valuable market share.
Aside from the branch expansion, the bank launched new products and services to its customers in 2007, including a 20-year mortgage product. The total amount lent to the Zambian public now amounts to Zk48.3bn ($10m) with interest income of Zk5.3bn.
“Today, because of the bank’s expansion strategy of making banking more accessible and hassle-free, the majority of Zambians have the opportunity of owning bank accounts, with the ‘Tonse’ account requiring only a minimum of Zk40,000 ($9) to open and operate,” says Barclays Bank Zambia managing director Zafar Masud.
