CBZ posts $37m profit

HARARE - CBZ Holdings Limited (CBZ) has recorded a profit after tax of $36, 7 million for the year to December 31, 2013 despite the economic challenges facing the country.

Due to the group’s prudence in providing $19,4 million for bad debts or non performing loans, the profit went down from $45 million recorded in prior comparable period.

However, the recorded profit marks five continuous years post dollarisation of profitable operations by the group.

“Despite challenges, the group has made notable inroads in the banking, insurance and asset management fronts and again the group has delivered significant value to all stakeholders along the value chain,” said CBZ’s incoming chairman Richard Wilde.

The Zimbabwe Stock Exchange-listed financial services group's total comprehensive income for the period stood at $39,9 million against $50 million registered in prior year.

Total assets increased to $1,5 billion from $1,2 billion in prior year period as total deposits surged to $1,3 billion up from $1 billion in prior year.

Advances made by the group increased to $1 billion from $854 million registered in same period last year.

The group’s banking arm, CBZ Bank managed to net interest income for the period under review went down to $79,4 million from $86 million registered in prior comparable period.

Non interest income increased to $36,9 million from $31,7 million posted in preceding comparable period.

CBZ Bank, the group's flagship arm posted a total comprehensive income of $18,7 million down from $33,6 million in prior year.

Its insurance division, CBZ Life Limited’s net written premium for the period was $7,4 million from $3,9 million in prior year’s comparable period.

Underwriting profit increased to $2,7 million from $1,8 million recorded in previous year period.

Profit after tax for the period stood at $3,2 million compared to $1,5 million in prior comparable period.

In line with the group’s dividend growth policy and considering the need for capital preservation, the group’s board proposed the declaration of a final dividend of $1,2 million.

“Having paid an interim dividend of $1 million, this translates into a total annual dividend of $2,2 million, a ten percent growth from the prior year,” said Wilde.

In the group’s outlook, Wilde said they remained hopeful of an improved operating environment which is conducive to sustainable investment pointing out that the need for lasting solutions to the funding challenges and the resuscitation of the manufacturing sector remains a priority for the economy to register positive growth.

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