CBZHL restructuring costs soar to US$30m
LIVINGSTONE MARUFU
CBZ Holdings Limited (CBZHL), a publicly traded financial services group, has incurred approximately US$30m in restructuring and retrenchment costs following the dismissal of over 300 employees in 2024 as part of its strategic transformation.
In line with its 2024–2028 corporate strategy, CBZHL initiated a restructuring exercise aimed at doubling its balance sheet from US$1.3bn to US$2bn and increasing its profit from US$50m to US$100m over the next four years.
Chief Finance Officer Joel Makombe emphasised that the completion of the restructuring exercise has positioned the financial institution for long-term success.
“We embarked on a restructuring exercise that was not solely a retrenchment process but a strategic reassessment of our business model to ensure alignment with our 2024–2028 objectives. We realigned our corporate structures and human resources to support our strategic growth trajectory. Consequently, the restructuring costs amounted to approximately US$30m,” Makombe stated.
CBZHL Chief Executive Officer Lawrence Nyazema echoed Makombe’s sentiments, acknowledging the difficulty of the process but underscoring its necessity in positioning CBZHL as a regional financial powerhouse.
“Our 2024–2028 strategy is fundamentally a growth strategy. Our goal is to double our balance sheet from US$1bn to US$2bn by 2028, and to expand our sustainable profits from US$50m to at least US$100m. Additionally, we aim for at least 10% of our profits to originate from regional operations and 20% from our subsidiaries,” Nyazema explained.
To execute this ambitious plan, CBZHL restructured its operational framework, leading to workforce reductions and a reassessment of internal processes and systems.
The restructuring was a key element of CBZHL’s aggressive cost-cutting measures, as businesses across the financial sector contend with economic headwinds, including rising inflation, liquidity constraints, and declining consumer spending. As part of this initiative, CBZHL eliminated 13 senior executive positions, reinforcing the sector-wide shift towards automation and digitization.
In a statement accompanying the group’s financial results for the year ending December 31, 2024, CBZHL Chairman Luxon Zembe confirmed that the restructuring was driven by the need to enhance operational efficiency and technological advancement in response to a rapidly evolving and competitive business environment.
“During the year under review, we undertook a strategic evaluation of the business to align our corporate and human resources structures with our long-term growth aspirations. This resulted in a comprehensive restructuring exercise launched in August 2024 and successfully concluded on January 31, 2025, thereby setting the group on a sustainable growth trajectory,” Zembe noted.
Despite these challenges, CBZHL remained profitable, recording a total income of ZWG4.11bn in 2024, down from ZWG5.27bn in the previous year.
However, the bank posted a profit after tax of ZWG168.05m in the period under review from ZWG1.5bn reported in the previous year.
CBZHL’s subsidiaries continue to play a pivotal role in ensuring comprehensive financial intermediation and intervention for clients. The lender maintains a robust capital position of ZWG7.91bn, supported by a strong deposit base of ZWG21.59bn and total loans and advances amounting to ZWG8.30bn.
All subsidiaries have maintained capital levels above regulatory requirements, with CBZ Insurance currently undergoing recapitalization to enhance its underwriting capacity and capitalize on emerging opportunities within the insurance sector.
The board has proposed a final dividend declaration of US$10m, translating to US$1.61 cents per share.
Looking ahead, CBZHL remains well-positioned to capitalise on emerging opportunities both locally and regionally, leveraging financial innovation to create sustainable, long-term value for its stakeholders.
