CBZ reports strong FY20 results
LIVINGSTONE MARUFU/
RYAN CHIGOCHE
Zimbabwe’s largest financial services group, CBZ Holdings Limited, leveraged on its strong balance sheet to deliver solid growth numbers in the 12 months to December 2020, despite the wider impact of the Covid-19 pandemic on the economy, Business Times can report.
Consequently, the set of good numbers further consolidates its leadership position in the sector.
Analysts said the strength of its diversified business model with multiple revenue streams saw profit for CBZ Holdings, which operates a commercial bank, mortgage financial services, asset management, insurance, property investments and agro-business units, jumping 262% to ZWL$5.1bn during the period under review from ZWL$1.4bn reported in prior year.
This performance was better than analysts’ expectations.
Total income for the group grew 19% to ZWL$14.6bn during the reviewed period from ZWL$12.2bn in 2019.
Of the ZWL$14.6bn total income, about ZWL$3.7bn was realised from funded income while about ZWL$10.6bn was from non-interest income.
The balance was realised from underwriting services.
Total assets for the group stood at ZWL$95bn during the reviewed period from ZWL$80bn recorded in the prior year, reflecting a 19% increase.
Its return on assets improved to 5.8% during the period under review from 5.3% in 2019, which was a direct result of CBZ’s actions it took to strengthen and protect the earnings of the group.
Despite this firmer base, the group, however, suffered a ZWL$947m credit loss and ZWL$729m loss during the period under review.
“The CBZ group continued to leverage on its strong capital and balance sheet positions, deep understanding of the local markets, extensive investment in digital platforms and a culture of innovation to provide much-needed support which was greatly appreciated by our employees, clients and other stakeholders,” CBZ chairman Marc Holtzman said in a statement accompanying the group’s financial statement.
He added: “Furthermore, the addition of new and strengthening of existing correspondent banking relationships enabled the group’s banking subsidiaries to better meet the trade finance requirements of its clients.”
The price of CBZ’s share skyrocketed by 12 093% to end the year at ZWL$85, making it the Zimbabwe Stock Exchange (ZSE)’s largest counter, with a market capitalisation of ZWL$58.4bn.
The ZSE benchmark index rose by 1,726% growth in the period under review. The board declared a final dividend of ZWL$1.5bn or 287.37 cents per share.
