FINANCIAL services group, CBZ Holdings total income jumped 43 percent to $83,4 million during the four months to April 2019 from $58,1 million as at December 2018.
Group chief executive officer Blessing Mudavanhu told shareholders at the group’s annual general meeting in the capital this week that the growth was supported by strong income generation and diversification supported by investment in new products and technologically driven channels.
Resultantly, the group registered a 14 percent improvement in cost to income ratio to close the period at 45,5 percent from 59 percent in December 2018.
Underwriting income closed the period pegged at $4,6 million compared to $4,3 million in December 2018 on increased market presence in the insurance sector.
At $448,8 million, insurance assets were 18,3 percent above $379 recorded at December 2018 due to growth in underwritten business, as a result of continuous product review and expansion of distribution channels.
Net advances rose 8,1 percent to $526,3 million while funds under management also increased by 18,3 percent to $448,8 million from $379 million as at December 2018 despite a subdued performance on the stock market during the quarter under review.
The period was characterised by volatility as the Reserve Bank of Zimbabwe announced the interbank market for foreign currency as well as the introduction of RTGS$ as functional currency.
Total deposits improved by 1,7 percent to $2,11 billion accounting for 16,6 percent of the total sector deposits.
By end of the four months under review, 238 000 bank accounts were active representing a 11 percent growth from same period in the prior year. Number of transactions went down 22 percent to 22,5 million from 29 million in the same period in 2018 although the value of transactions ballooned by 52 percent to $16 billion.
Total assets went up to $2,81 billion from 2,45 billion as at December 2018 driven by growth in total deposits and profitability.
Expenditure increased by 38,4 percent to $45,9 million compared to $33 million recorded as at December 2018.
The group managed to contain expenditure to below prevailing inflation levels now at 75 percent.
At 76 percent, the group’s liquidity ratio was above the regulatory ratio of 30 percent while capital adequacy levels for all subsidiaries remained above regulated levels.
Non performing loans ratio of 15,3 percent was recorded, an improvement from 16,4 percent in December 2018 and the group is targeting to achieve a single digit NPL ratio.
The group will continue on cost management, increase technology driven solutions as well as portfolio and earnings diversification as its focus areas to year 2025.