CBZ posts 38% profit increase
PHILLIMON MHLANGA
Zimbabwe’s largest financial services group, CBZ Holdings posted a 38.4% increase in profit to ZWL$1.8bn during the six months to June 30, 2020 from ZWL$1.3bn achieved in the prior comparative period, largely driven by a massive rise in non-interest income.
The group suffered a 24% drop in comprehensive income in the six months to June 30, 2020 as the country’s largest lender embarked on a restructuring exercise.
Total income for the group went down to ZWL$2.6bn during the reviewed period from ZWL$3.4bn achieved in the same period in 2019.
Interest income grew to ZWL$720m from ZWL$573m in the prior comparative period.
Noninterest income grew to ZWL$6.6bn from ZWL$3.3bn.
The group, however, suffered a monetary loss of ZWL$2.3bn during the period under review.
In 2019, the group suffered a monetary loss of ZWL$780m. Total assets for the group grew to ZWL$58.6bn during the period under review from ZWL$46.7bn in the same period in 2019.
The net loan book grew to ZWL$12bn from ZWL$7.9bn.
The bulk of loans and advances were channelled towards agriculture, which received ZWL$6.8bn, followed by mining, which received loans and advances amounting to nearly ZWL$2bn.
Distribution received about ZWL$1.6bn while manufacturing got ZWL$1.2bn.
Clients deposits jumped to ZWL$45bn from ZWL$34bn in the comparative period in 2019.
CBZ reduced its portfolio of financial securities including Treasury Bills and savings bonds by 66% to ZWL$1.05bn during the six months to June 30,2020 from ZWL$3.1bn in the prior comparative period.
The CBZH share price advanced by 4 198.55% to close at ZWL$29.9652 in the first half of 2020, outperforming the overall market.
The financial services provider board of directors declared an interim dividend of ZWL$350 000 000 or ZWL$0.6705 cents per share, which translates to a growth of 6 244.3% on the comparative 2019 interim dividend.
Going forward, CBZ Holdings chairman Marc Holtzman said although the monetary and fiscal authorities announced further measures to support the foreign currency auction market, stabilise the exchange rate and prices, and ultimately the macroeconomic environment, the impact of these measures will be felt during the second half of the year.
He, however, said the “policy conduct” is expected to remain constrained by the continued lack of balance of payments and budgetary support, as well as the need to balance the competing goals of supporting economic growth and social wellbeing