CBZ Holdings profitability up 159pc
Tinashe Makichi
CBZ Holdings Limited posted a 159 percent jump in profitability to US$72,2m for the year to December 31, 2018 from US$27,83m recorded in the prior year on the back of a positive performance despite the prevailing macro-economic challenges.
Total income for the group was up 14 percent to US$199,5m from US$175m while net interest income for the same period was at US$82,1m from US$75,6m in the prior year.
Non-interest income during the period under review went up 18,3 percent to US$108,12m driven by a growth in commission and fee income, recovery on bad debts and property sales.
“The group will continue unlocking value from its land and properties portfolio through increasing presence in the properties sector. We have been efficient on our debt recovery initiatives,” said Blessing Mudavanhu,CBZ Holdings CEO .
CBZ Holdings’ assets grew to US$2,44bn during the period under review driven by Treasury Bills which were sitting at US$1,21bn.
Non-performing loans for the group during the period were down 10,7 percent to US$100,1m as the group sought to reduce risk in lending to agriculture which is currently experiencing drought while containing costs. Agriculture was leading on the advances with US145,2m with NPL sitting at US$49,7m.
Deposits for the group were up 12,2 percent recording US$2,07bn in the period under review as the group registered about 20 percent growth in new accounts for 2018.
“The focus on the deposit mix resulted in an improvement of the interest margin from 3,3 percent to 3,5 percent. The group adopted a strategy of passing part of the reduced costs to its clients, borrowing clients in particular,” said Collin Chimutsa, group CFO. Operating expenses for the group were up at US$119,05m driven by the cost of property sales from a 2017 comparative of US$111,9m.
Basic earnings per share more than doubled to 13,9 US cents in 2018 from a 2017 comparative of 5,4 US cents.
CBZ Holdings board chairman Noah Matimba said the implementation of macro-economic reforms and liberalisation of the foreign exchange market on the back of foreign currency shortages and in the absence of meaningful foreign direct investment and bilateral support, pose a short to medium term threat to the business operating environment.
“The continued improvement in the relationship with the international community will hopefully unlock the much needed foreign currency inflows and enhance exploitation of vast opportunities that Zimbabwe offers,” Matimba said.