[2007-09-25]  ZNCB to recover market share
ZAMBIA National Commercial bank (ZNCB) will soon implement its strategic restructuring programme to recapture its market share, grow deposit and asset bases.

ZNCB managing director, Mark Wiessing, said despite the fact that the bank was still “big, strong and reliable,” it had lost market share over the last three years.

According to ZNCB latest, News Flash, statistics showed that deposit market share had dropped from 27 per cent to 19 per cent while total assets went down from 39 to 33 per cent.

Mr Wiessing said of concern to the bank was the significant provision the bank made for bad debts made in the past which hindered it from doubling profit the year under review.

He also regretted that the cost to income ratio which was one of the main measures of the efficiency of the bank was not impressive in the market and the best way to re-establish itself was to improve its income growth.

Mr Wiessing said there was general conviction that ZNCB had the capacity and ability to regain its slot and improve income to an extent that it would be sustainable in the long run.

He said management had held several sessions to draw up a strategic direction after the operations and working culture in the bank.

“We have drawn the attention of the new board to this strategic direction and have started sharing with some staff the details in due course,” he said.

And unveiling the management structure, Mr Wiessing said following the successful completion of the sale of 49 per cent ZCNB shares to Rabobank and subsequent change in management, the new partners took time to appreciate the bank’s operating environment to enable them devise long-term, cost effective solutions to the challenges and needs the bank was experiencing.

He said the challenge the bank was experiencing was to recapture lost business from competitors, bolstering customer care, refurbishing branches and minimising operation costs.

“To address these concerns, the budget for 2007 has been reviewed and we are also in the process of finalising the strategic plan for the next five years.

The strategic plan will provide direction to where the bank should be in the next five years,” he said.

Mr Wiessing said to support the aspirations of the strategic plan, management had found it imperative to review and realign the responsibilities of the executive management.




Source: © 2005 Zambia Daily Mail.