Michael Tome & Kudakwashe Mhundwa
HARARE – The country’s biggest financial services group, CBZ Holdings Limited declared impressive results more than doubling profit after tax for 2018 compared to 2017.
Profit after tax was $72, 2 million growing 159, 7 percent from $27, 8 million the previous year, total income stood at $199, 5 million an increase of 14 percent over the 2017 figure of $175 million.
Total deposits increased to $ 2 billion as at 31 December 2018 resultant of strong deposit mobilisation strategies coupled with a significant improvement in the market moving 12, 2 percent up from $1,8 billion in the prior year.
Presenting the bank’s financial statement to analysts on Monday, CBZ chief finance officer Collin Chimuka attributed the positive results to diversified income as the year closed with a 54, 2 percent non-interest income 2 percent points growth from 52, 2 percent in 2017, net interest income slumped 2 percent to 41, 2 percent from 43, 2 as underwriting income remained flat at 4, 6 percent.
“It is pleasing to note that the success of the group strategy in focusing on volume driven by non-interest income, has been increasing over the years recorded a contribution of 54, 2 percent translating to a $200 million total income,” said Mr Chimuka.
The bank attained a capital adequacy ratio of 28, 7 percent well above the minimum Reserve Bank of Zimbabwe 12 percent requirement giving a comfortable buffer of 16,7 percent points.
CBZ’s liquidity ratio closed the period under review at 64, 2 percent above the statutory requirement of 30 percent.
Total advances of $487, 0 million were made climbing down 48, 3 percent from $941, 4 million advanced last year.
The board proposed the declaration of a final dividend of $6 430 606. Having declared an interim dividend of $2, 589, 740 and this translate to an annual dividend of $9 020 346 a 155, 9 percent growth from prior year.