CBZ in 300% profit surge

Business Zimbabwe

Ndaka Majaka

ZIMBABWE’S largest financial services group, CBZ Holdings Limited (CBZ), posted a 301 percent surge in profit-after-tax to RTGS$137.4 million in the six months ended June 30, 2019 up from RTGS$34.3 million recorded during same period in 2018.  The lucrative earnings were buoyed by a strong performance from the bank subsidiaries.

CBZ group chairman, Noah Matimba, said the profit jump has enabled the bank to pay shareholders a lucrative interim dividend of RTGS$5.5 million or 1.06 cents per share which translates to a growth of 113 percent compared to 2018 interim dividend.

“Profit after taxation RTGS$137.4 million and a growth in deposits of 29.4%. It is pleasing to note that all CBZ business units have thus far adapted successfully and are weathering the prevailing and seemingly volatile environment,” he said.

In the half year period, total assets increased to RTGS$3.7 billion from RTGS$2.5 billion recorded in the same period last year.

Total liabilities stood at RTGS$2.8 billion, a 33 percent increase from RTGS$2.1 billion reported in the previous year.

Loans and advances to customers amounted to RTGS$108.2 million, an increase from RTGS$22.8 million posted in 2018.

CBZ Holdings’ subsidiaries include insurance, asset management, property investment and mortgage finance. In its property and equipment division, properties were revalued and tested for impairment on an open market.

The rental income derived from investment properties during the period under review amounted to RTGS$1.3 million, an increase from the 2018 figure of RTGS$669,369 while direct operating expenses decreased to RTGS$111,921 from RTGS$253,528 recorded in the prior year.

Strong performance by the group’s various divisions came about as the insurance arm realised a net profit of RTGS$21.2 million from RTGS$2 million in 2018. The bank’s asset management subsidiary posted a RTGS$1.4 million profit after tax from RTGS$494,000. Going forward, the bank envisages the operating environment to remain challenging. However, CBZ says it has crafted adequate measures to hedge against the challenges.