TINASHE MAKICHI
The country’s biggest financial institution, CBZ Holdings, has put on hold its regional expansion plans as it seeks to strengthen local operations before venturing into a foreign market.
This comes after indications that CBZ Holdings lost part of its market share making it difficult for the financial institution to test the foreign waters.
The financial institution has been scouting for investment opportunities in the region with possible destinations having already been identified.
A well-placed source close to developments told Business Times that CBZ Holdings has for now put on hold plans to go regional as it seeks to bolster local operations.
The source, however, could not rule out plans of regional expansion in the future as management at the financial institution continues to look for perfect investment opportunities in the region.
“CBZ Holdings has put on hold its plans for regional expansion as it seeks to strengthen its local operational base.
This is after the financial institution slightly lost some of its market share,” said the source.
“It remains part of the group’s plans to go regional once a proper asset is identified in the region or a proper investment opportunity.
But at the moment, the plans to go regional have been put on hold.”
CBZ Holdings could not comment on the matter because of Zimbabwe Stock Exchange reporting regulations forbid companies to release information when they are in closed period.
“Unfortunately we are currently in a closed period with our financial results to be released end of March. We, therefore, are unable to respond to your particular questions below,” said Matilda Nyathi, CBZ Holdings group executive marketing and corporate affairs.
According to CBZ’s third quarter update for 2019, the group is looking at accelerating the digitisation programme including enhancing the CBZ Touch platform while also pursuing structured trade finance solutions.
The group is also looking at creating and entering new markets which include construction and innovation for instance to support business development in the informal and SMEs sectors.
CBZ Holdings is also aiming to be in the top five market capitalisation on the ZSE where each subsidiary aims to be profitable and aiming to be in top five of its industry.
The coming of new shareholders Akribos also saw the appointment of a new chairman, Marc Holtzman. The flagship business of the group, CBZ Bank Limited, was founded in 1980 and was known as the Bank of Credit and Commerce Zimbabwe.
It was taken over by the government of Zimbabwe in 1991, to avert looming liquidation and was renamed Commercial Bank of Zimbabwe Limited.
The company was listed on the Zimbabwe Stock Exchange in 1998 and in 2005, the company rebranded, creating CBZ Bank as the main business and CBZ Holdings Limited being the holding company.
In the third quarter 2019 financials, CBZH’s net interest income was up 39.85% to ZWL$90.3m from ZWL$64.6m in the same period in 2018.
The group said the period was characterised by foreign currency shortages, rising operating expenditure driven by price indexation and upward review on fuel and electricity, waning consumer demand and inflationary pressures.
The group said its overall strategic goals will be preservation of shareholder value with the group aiming to be in the top five market capitalisation on the ZSE.
It said each subsidiary aims to be profitable and to be in top five of its industry.
