PHILLIMON MHLANGA
Zimbabwe’s largest financial services group, CBZ Holdings, increased its portfolio of Treasury Bills (TB) by 12,7 percent during the six months to June 30,2018.
Its financial results released last week, the Zimbabwe Stock Exchange-listed group, which superintends over a range of financial services firms including CBZ Bank, a property unit and insurance services, said the amount of TBs held by the financial institution increased to $995,1 million during the period under review from $882,6 million held at the end of December last year.
Blessing Mudavanhu, CBZ Holdings group chief executive officer, said his institution has been very active in the purchasing of the TBs and bonds from both the primary and secondary markets.
CBZ also purchased $108,1 million during the six months to June 30,2018.
“Investment securities (TBs and bonds) increased mainly due to some purchases from both the primary and secondary markets,” Mudavanhu said.
The development resulted in the group’s total assets increasing by 15,5 percent to $2,5 billion during the period under review from $2,2 billion at the end of 2017. Such asset base means that the institution is well placed to absorb shocks and preserve assets.
Profit after tax stood at $34,3 million during the period under review from $12 million recorded at the end of December 2017, representing a 186 percent increase.
CBZ registered a 15,8 percent growth in revenue to $93,2 million from $80,5 million at the end of December last year.
Loans and advances to customers went down to $767,6 million during the reviewed period from $941,4 million recorded in December 2017.
The bank is focused on supporting productive and export oriented sectors through finance facilities and export incentives.
The bulk of loans and advances were channelled towards agricultural sector, which received $176,99 million followed by private sector, which received loans and advances amounting to $$174,47 million.
Noah Matimba, CBZ Holdings board chairman said government should strengthen the governance of public institutions, normalise international relations and ensure consistence on fiscal and monetary policies is achieved.
These reforms, Matimba said, would stabilise the macro-economic environment and boost public and investor confidence.
“The economy is noticeably at an inflection point, hence the need for policy makers to expedite initiatives to rebuild public and investor confidence, among them strengthening governance of public institutions, normalising international relations and pursuing coherent and consistent fiscal and monetary policies,” he said.
“Nevertheless, CBZ holdings remains well geared to leverage its sizeable balance sheet, strong market presence, diversified business portfolio, strong credit ratings and investment in research and development to pursue emerging opportunities and manage attendant threats from the operating environment.”
