CBZ net income flat at $12mln in H1, forecasts 11pct revenue growth FY

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HARARE – Zimbabwe’s largest financial group, CBZ Holdings on Thursday reported an after tax profit of $12 million in the six months to June which is largely flat when compared to $11,9 million achieved in the same period last year.

Net interest income was up 2,8 percent from 38,6 million in the comparable period last year to $39,7 million. Banker’s acceptances and overdrafts contributed $32,2 million and $19 million respectively while security investments brought in $21,7 million.

Non-interest income accounted for 46 percent of the group’s total income, up from 42 percent last year.

Presenting financial results on Thursday, chief executive Never Nyemudzo told analysts that there is need to diversify the group’s revenue income base.

“Treasury bills now constitute a significant part of our balance sheet but we have seen that as bringing stability and diversification to our balance sheet. We are excited with the returns because while the interest from loans is going down (as) we are lending at 6 percent, net of tax treasury bills are yielding beyond 7 percent, so that convergence is bringing a lot of diversity to the sources of income,” he said.

The group’s holding of Treasury Bills increased from $751,6 million to $814,5 million.

“So the ideal is to maintain at that level  but we are going to see more dilution on the balance sheet from insurance and properties, which are the key portfolios that have potential to grow their assets.”

Total assets grew 3,5 percent to $2,16 billion.

Basic Earnings Per share (EPS) grew to 4.6 cents from 4.5 cents.

For the full year Nyemudzo said the group forecasts an 11 percent increase in income.