CBZ records another solid set of financial results

Published: 10 June 2013

CBZ HOLDINGS has posted yet another solid set of financial results in the full year to December 31, 2012, as profit after tax vaulted 48,4 percent to US$45 million, compared with US$30,3 million over the same period the previous year. Basic earnings per share jumped 67 percent to US8,08 cents on the back of a 51,3 percent increase in total comprehensive income during the period under review.

Chairman Mr Luxon Zembe said in a statement accompanying the results that he was happy that the company was meeting one of its key objectives of consolidating activities within the group.

"The synergies created among subsidiaries resulted in improved overall group performance and we shall continue to exploit the synergies to maintain our position as the largest financial services group in Zimbabwe," he said.

Mr Zembe said in line with the group policy and need to uphold shareholder investment value, CBZ has declared a US0,172 cents dividend per share.

"A final dividend of US0,172 cents per share has been proposed and this translates to a total annual dividend of US$2 081 397, up 21,7 percent from the 2011 figure," he said.

The Zimbabwe Stock Exchange-listed financial group registered a 61 percent increase in interest income from US$109,5 million to US$156,8 million.

Net interest income rose from US$75 million US$95,3 million while non-interest income declined slightly from US$44,8 million to US$44 million.

The group said deposits during the period totalled US$1 billion compared with US$830 million mobilised over the comparative period last year.

Advances during the period under review showed a slight increase, rising from US$790,3 million in the 12 months to December 2011 to US$854,7 million.

The group's gross maximum exposure from advances stood at US$266 million for agriculture, distribution US$216 million, services US$111,9 million, manufacturing US$153 million, private sector US$94 million, transport US$21 million, mining US$13 million, communication US$6 million, construction US$4,6 million and financial organisations US$1 million.

But the company said its net maximum exposure (not covered by mortgage security) stood at US$177,3 million at the end of last year.

Group assets increased to US$1,2 million during the year compared with US$1 million in the comparative period to December 2011 while owners equity and reserves surged significantly from US$119 million to US$160 million.

Commenting on the outlook, Mr Zembe said CBZ remained hopeful for an improved operating environment conducive for sustainable investment.

Said the CBZ chairman: "The need for longlasting solutions to the funding challenges and the resuscitation of the ailing manufacturing sector remains a priority for the economy to register meaningful positive growth."

The group's operations are spread across commercial banking, mortgage finance, asset management and insurance and property.
- TH

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