CABS H1 profit falls 20pct to $16,5mln

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HARARE,– Old Mutual Zimbabwe’s mortgage lender Central African Building Society (CABS) reported a 20 percent drop in profit in the six months to June from $20,7 million last year to $16,5 million, weighed down by a surge in operating costs.

Operating expenses were up 13,5 percent from $30 million to $33,6 million. Impairments during the period under review were $2,9 million compared to a reversal of impairments of $1,6 million last year.

Net interest income in the six month period increased by 7,2 percent to $29 million.

The building society achieved non-funded income of $23,7 million compared to $21,6 million previously.

Deposits were up from $768 million last year to $855,6 million while loans and advances increased by 11,5 percent to $594.

CABS’s holdings of Treasury Bills increased from $88,4 million during the same period last year to $131,5 million pushing total assets up from $990 million last year to $1,08 billion.