By CASSEY KAYULA –
INDO Zambia Bank (IZB) has been awarded the AA-rating, as one of the most financially stable institutions in the banking sector in the country.
The move by the Credit Rating Agency Limited (CRA), which is the only legal credit rating agency in Zambia, followed the decision by the IBZ’s board of directors on August 22 2017 to undergo credit rating.
IBZ becomes the third bank to be rated by CRA since its inception 2015 with Cavemont and Zanaco having been the first two.
CRA Zambia chairperson Wilson Kalumba said IZB had emerged as one of the most major stable banks in Zambia, outperforming some other institutions.
Mr Kalumba, who is Lusaka Mayor, said at the bank’s credit rating presentation in Lusaka yesterday that the AA rating reflected a good and stable financial position for the bank.
“I am urging banks to exercise high levels of transparency by engaging third parties. Accountholders should be concerned with credit ratings for banks. We do not know what ratings some banks are,” he said.
He said regulators should see credit ratings as a complementary in ensuring a safe and financial environment.
And IBZ board chairperson Orleans Moyo said a strong financial condition, impeccable and consistent record of excellent performance and the strength of the bank through its unique shareholding with the participation of two Governments gave the bank a highest rating.
She said that it was vital to have that position independently verified and assessed hence the engagement of professional services of the CRA.
“The bank’s continued good performance is a reflection of the outcome of the strategic focus rendered by the board of directors.
“We have continued to attain significant milestones because it’s workings have remained firmly grounded in our culture which has been the major contributor to our long term performance and stability,” she said.
Ms Moyo said the board of directors would nourish and strengthen fundamental beliefs and culture of pursuing a customer-centric business model, prudent risk management and focus on growing a strong balance sheet.
According to CRA chief executive officer, Mwiza Mbewe, the rating ranges from “C” to “AAA” which is the highest classification.