CBZ posts strong performance
LIVINGSTONE MARUFU
CBZ Holdings Limited, a publicly traded financial services group, has reported a robust performance for the first five months of 2025, surpassing expectations across several key metrics, buoyed by a relatively stable macroeconomic environment.
Despite ongoing structural challenges, the local currency—the Zimbabwe Gold (ZWG)—has remained largely stable, depreciating only marginally by 4.2% against the US dollar. It closed May at ZWG26.9102 per USD, compared to its position at the beginning of the year.
Speaking at the group’s Annual General Meeting (AGM), CBZ chief executive officer Lawrence Nyazema said the company capitalised on a strong balance sheet and adaptive strategies to deliver above-budget results.
“In terms of the top line, year-to-date total income reached US$88.95 m, 4.7% above the US$84.96 m budget, driven by strong non-interest income of US$58.60 m [budget of US$49.58m], and accounting for 40.9% of the full-year budget of US$217.69m,” Nyazema said.
He noted that profit after tax (PAT) stood at US$28.33 m—57.0% above the budgeted US$18.05 m—representing 50.1% of the full-year PAT projection of US$56.52 m.
“This was supported by favourable income performance, an expected credit loss release, and operational expenditure efficiency,” Nyazema added.
The group’s asset base stood at US$1.43 bn, a 7.0% increase from the December 2024 closing position and 3.2% above budget. This figure represents 93.8% of the budgeted year-end asset base, underpinned by a strong deposit base of US$993.73 m.
Deposits rose to US$993.73 m, exceeding the budgeted US$870.14 m by 14.2%, with demand deposits contributing the lion’s share at US$729.30 m—14.6% ahead of budget.
However, Nyazema revealed that net advances were slightly underwhelming at US$361.97 m—14.9% below the budgeted US$425.50 m—though they registered a 12.5% growth from December 2024.
“This was due to limitations in medium- to long-term funding,” he explained.
There was a lower-than-expected credit loss expense, attributed to improved credit quality across both USD and ZWG loan portfolios, as well as recoveries from previously non-performing loans.
Shareholder funds closed the period at US$324.73 m, representing 89.2% of the budgeted year-end position. This was largely due to current retained profits, lower activity on other equity lines, and higher-than-budgeted distributions to shareholders. Still, the figure reflects a 5.9% increase from the December 2024 position of US$306.74 m.
Looking ahead, Nyazema said CBZ would focus on recapitalising its strategic business units, defending market share, modernising core banking systems, stabilising IT infrastructure, and pursuing more cost-effective lines of credit.
“In seeking credit lines, CBZ will build and grow both local and international relationships,” he said.
With a strong financial position and renewed operational focus, the group is positioning itself to remain a dominant player in Zimbabwe’s financial services sector while navigating an evolving economic landscape.
