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A.

INTRODUCTION

It is Zanacos core Corporate Social Responsibility (CSR) to take into account its economic, social and environmental impact and its
obligation to employees and the local community. Zanaco strives to promote sustainable development of the communities in which
the Bank operates not just for the present but for future generations as well.
Zanacos CSR engagements in 2013 include:
Financial education for various target groups under the programme dubbed Financial Fitness.
Community engagement and support through Strategic partnerships and direct community support around health, education,
environment, water and sanitation.
B.

CSR ACTIVITIES

1.

Financial Fitness

One of Zanacos priority areas is providing financial education to various segments of society to help improve personal financial
management and promote improved knowledge of banking products and services in order to create greater confidence in use by
citizens. This is in pursuit of complementing Government efforts in attaining the Millennium Development Goal (MDG) on eradicating
extreme poverty and hunger. Target groups reached in 2013 include small scale and emergent farmers, SMEs, Children, youths and
the general adult population.

Zanaco trained 762 farmers in personal financial management and entrepreneurship. Trainings were conducted in collaboration
with Zambia National Farmers Union (ZNFU) through the District Farmers Associations (DFAs) and Dairy Association of Zambia (DAZ).
The trainings promote commercialisation of small scale agriculture and diversification of the rural economy. The total number trained
to date is 2,693.
During the year, 418 SMEs were trained by the bank to enhance business skills and promote integrity in business management.
Some training focused on building capacity of business owners and managers in the construction and mine suppliers sector. The
Bank has trained 4,490 SMEs to date.
As Zanaco we believe that to achieve meaningful and sustainable impact in financial education, individuals need to be introduced
to such concepts early in life. Zanaco takes pride in providing financial education to children and youth through various avenues
that include institutions of learning such as schools and universities. Financial education was provided to 5,841 children and youth
bringing the total number reached to date to 22,275. Basic financial literacy concepts introduced include spending money wisely,
saving, budgeting, borrowing, banking services and financial planning.

Zanaco recognises the need to reach all citizens especially rural and low income groups. Financial and consumer education
programmes were designed and aired on Radio 1 in all 7 major local languages..

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2.

Community engagement and support

Zanaco continues to support and undertake community engagements


around the country in pursuit of solutions to national issues such as
education, health, environment, water and sanitation. The bank leverages
its resources through partnerships and engagement of members of staff
in various locations.
i)

Raising literacy levels among early grade learners:

Zanaco in partnership with Read To Succeed Project a USAID funded


project and the Ministry of Education, Science, Vocational Training and
Early Education supported 110 primary schools in Muchinga province
with Reading Tools in a Box. The objective is to improve early grade
literacy among grade 1 to 4 pupils through provision of reading and
teaching materials packaged as reading tools in a box. This support
complements Governments efforts in achieving the MDG on universal
primary education with emphasis on quality. The partnership was
launched by Hon. Dr. John T. N Phiri Minister of Education, Science,
Vocational Training and Early Education who emphasised the need to
raise literacy levels in the country which are currently very low thereby
affecting the performance of scholars in other subjects.
ii)

Promoting green and clean energy

Zanaco in partnership with Empowered by Light Foundation a US based


charity establishment funded a solar powered micro grid for Sioma High
School in Sioma District of Western Province. The focus was on
preservation of the environment through provision of clean energy and
improving the learning environment for rural pupils. This support is in
line with the MDG on ensuring environmental sustainability. Sioma
District is currently not connected to the national electricity grid and
therefore the solar micro grid replaced diesel generators which were
costing the government K135,000 per year in polluting diesel. The solar
powered micro-grid also has battery back-up storage to enable power
run at night. Teachers and 600 boarding students now have clean and
green power.

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iii) Promoting entrepreneurship among students


The partnership with the University of Zambia focuses on co-operation
in the implementation of a capacity building project on financial
education and infrastructure development for the field station in the
School of Agricultural Sciences. The financial education and
entrepreneurship training module to be developed will form part of
one of the courses provided.
iv) Improving access to water and sanitation
During the period under review Zanaco supported Mwapona
Community School in Choma District with water and sanitation related
support. The school is currently using 2 pit latrines servicing 634
students at a toilet pupil ratio of 1: 317. With the completion of the
project, the school will have 12 sanitation points reducing the toilet
pupil ratio to 1: 53. The support is focused on installation of water
reservoirs and provision of plumbing materials to enable the school
have waterborne toilets. The total number of communities previously
supported with various water installations is 6.

v) Supporting quality health care


Zanaco donated a neonatal resuscitation unit and 10 mattresses to
Nakonde General Hospital in supplementing Government efforts to
attain the MDG on equitable access to quality health care with emphasis
on reducing under five mortality rates.
vi) Staff engagement
Our members of staff participate in CSR community engagement
through identification and recommendation of communities requiring
support. The school Financial Fitness programme is rolled out through
our branches where schools are adopted and provided with training
materials. Zanaco members of staff have participated in Job shadowing
for pupils and facilitating branch visit for pupils. During the World
Savings day, the Bank provided an opportunity for every member of
staff to mentor a child on saving through provision of piggy banks.

C. CONCLUSION
Zanaco continues to value input towards Corporate Social Responsibility.
We believe it is not only the way of giving back to society
but a way of doing business.

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Section 164(6) of the Companies Act, 1994 (as amended) requires the Directors to prepare financial statements for each financial year
which give a true and fair view of the state of affairs of the Bank and of the profit or loss for that period.
The Directors are responsible for the maintenance of adequate accounting records and the preparation and integrity of the annual
financial statements and related information. The Independent external auditors, Messrs Deloitte & Touche, have audited the annual
financial statements and their report is shown on page 39.
The Directors are also responsible for the systems of internal control. These are designed to provide reasonable, but not absolute
assurance as to the reliability of the financial statements and to adequately safeguard, verify and maintain accountability for assets
and to prevent and detect material misstatements. The systems are implemented and monitored by suitably trained personnel with
an appropriate segregation of authority and duties. Nothing has come to the attention of the Directors to indicate that any material
breakdown in the functioning of these controls, procedures and systems has occurred during the year under review.
The annual financial statements are prepared on a going concern basis, nothing has come to the attention of the Directors to indicate
that the bank will not remain a going concern in the forseeable future.
In the opinion of the Directors:
The profit and loss account is drawn up so as to give a true and fair view of the profit of the Bank for the financial year ended 31
December 2013;
The statement of financial position is drawn up so as to give a true and fair view of the state of affairs of the Bank as at 31 December
2013;
There are reasonable grounds to believe that the Bank will be able to pay its debts as and when they fall due; and
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and in the
manner required by the Companies Act, 1994 (as amended) and the Banking and Financial Services Act,1994 (as amended).

_______________________
Director

_______________________
Director

_______________________
Director

_______________________
Secretary

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To the members of
Zambia National Commercial Bank Plc
We have audited the accompanying financial statements of Zambia National Commercial Bank Plc, which comprise the statement
of financial position as at 31 December 2013, and the statement of profit or loss and other comprehensive income, statement of
changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other
explanatory information.
Directors responsibility for the financial statements
The Directors are responsible for the preparation and fair presentation of these financial statements in accordance with International
Financial Reporting Standards, and in the manner required by the Banking and Financial Services Act, 1994 (as amended), and the
Companies Act, 1994 (as amended), and for such internal control as management determines is necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance
with International Standards on Auditing. Those Standards require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant
to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit
also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements give a true and fair view of the financial position of Zambia National Commercial Bank Plc
as at 31 December 2013, and of its financial performance and cash flows for the year then ended in accordance with International
Financial Reporting Standards, and in the manner required by the Banking and Financial Services Act, 1994 (as amended) and the
Companies Act, 1994 (as amended).
Report on other legal requirements
The Companies Act, 1994 (as amended) under section 173 (3) requires that in carrying out our audit, we consider and report to you
on the following matter: We confirm that, in our opinion, the accounting and other records and registers have been properly kept
in accordance with the Act.
In accordance with section 64 (2) of the Banking and Financial Services Act, 1994 (as amended), we report that in our opinion:
We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the
purposes of our audit;
We are not aware of any transaction that has not been within the powers of the Bank or which was contrary to the Act;
The Bank has complied with the provisions of this Act and the regulations, guidelines and prescriptions under this Act; and
There is no non-performing or restructured loan owing to the Bank whose principal amount exceeds 5% of the regulatory capital
of the Bank.

DELOITTE & TOUCHE

C. CHUNGU
PARTNER
Date: 24 February 2014

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