CBZ total income up 20pct in Q1

HARARE,– Zimbabwe’s largest financial institution, CBZ Holdings’ total income for the three-month period to March 2018 is up 20.1 percent to $45.2 million compared to $37.7 million same period in 2017 largely due to strong income generation supported by investment in new products and digital channels.

Acting chief executive, Peter Zimunya, in a strategy update to shareholders at annual general meeting , said the drive to increase operational efficiencies was bearing fruit, with a five percent decline in operating costs which amounted to $24.8 million from $26 million over the same period last year.

During the period, total deposits increased marginally by 1.2 percent to $1.83 billion compared to $1.8 billion prior year same period. According to Zimunya, total deposits growth resulted from 26 percent increase on savings deposits, which is in line with the group’s thrust to mobilise retail deposits to manage cost of funds.

The group net advances for the quarter declined 7.2 percent to $947.3 million from $1 billion in 2017. On other hand total assets increased 2.5 percent to $2.18 billion compared to $2.13 billion same period in 2017 driven by growth in total deposits and profitability.

Funds under management increased to $237 million from $148 million despite subdued performance on the stock market during the quarter.

Insurance assets increased to $9.6 million from $8.3 million due to growth in underwritten business, as a result of continuous product review and expansion of distribution channels.

The group’s return on asset and return on equity ratios improved owing to 20 percent revenue growth coupled with a five percent cost reduction.

The liquidity position of the group remained sound above the regulatory ratio of 30 percent   while the capital adequacy levels for the entire Group’s subsidiaries are above the regulated levels except for the newly formed CBZ Risk Advisory and efforts are underway to regularize its capital position.

Zimunya said the non-performing loan ratio was higher  at 10.2 percent from 6.7 percent previously, adding that the group will work harder to enhance the quality of the loan book.

The value of transactions processed by its flagship CBZ Bank reached $7.7 billion during the quarter compared to $6.2 billion same period last year. The bank’s number of accounts were at 214,000 compared to 205,000 in the prior period.

Zimnya said the group has infrastructure projects worth over $28 million for 2018. – The Source