CBZ maintains forecast of 10% growth in total income

Chairman Luxon Zembe, left, with group CEO Dr John Mangudya

Published: 10 June 2013

CBZ is still maintaining the forecast it made at its last analyst briefing of 10% growth in total income, group chief finance officer Never Nyemudzo told the AGM today.

"We expect our balance sheet to grow by 20% supported by the 20% growth on deposits. A modest 8.3% growth on advances in order to promote liquidity creation on the balance sheet. Funds under management 8.3% as well as 10% on total income," stated Nyemudzo.

He noted that "the group continues to maintain high capital levels" with total capital as at 31 March 2013 at $171 million whilst the bank's total capital is at $151.8 million.

"The bank has Tier I capital of $126 million compared with the $25 million that is currently required by the central bank and it is also well ahead of the $100 million that is expected by 2014.

He also said the Asset Management is at $1.3 million compared with $500 000, CBZ Life; the long term insurance at $3.6 million compared with $1 million required and the short term insurance is $1.3 million above the $1 million that is required.

Nyemudzo indicated that there was a 22.4% year-on-year growth on total income at $37.2 million for the 3 months to 31 March 2013 versus $30.4 million recorded in the same period last year.

"Profit after tax as a result recorded a 12% improvement from $9.2 million in the prior period to $10.3 million this year.

"So the focus as always is going to be on volumes and product development as well as containment of operating costs," he added.

Total advances, as highlighted by Nyemudzo, recorded 20% increase year-on-year from $854.7 million to $934.1 million whilst total deposits improved by 26.4% from $1 032.4 million to $1 049.6 million

Looking at the key ratios, he noted that the loans to deposit ratio was at 88.9% against 82.8% as at December 2012.

"This is typical for the beginning of the year when cash demand in the economy and society at large is high," he said.

Liquidity ratio went up from 32.1% to 38.1% whilst cost to income ratio was 56.9% in 1Q13 from 57.8% in 4Q12.

The group's directors were re-appointed and fees of $555 800 approved while auditors Deloitte and Touche Chartered Accountants were re-elected with remuneration of $460 000 also approved.

- zfn

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