Cabs assets surpass $1bn

HARARE - Old Mutual’s mortgage lending unit Central African Building Society (Cabs) total asset base increased by 22 percent to $1 billion from $852 million in the year to December 2015 mainly driven by a 27 percent growth in deposits.

Cabs’ chairman Leonard Tsumba said total assets now stood at $1,04 billion while the society’s loans and advances had surged 27 percent from $44 million as at December 31, 2014 to $562 million during the period under review.

In the period, Cabs recorded a net surplus growth of 18 percent to $28 million, up from $24 million while net interest income increased by 36 percent to $59,9 million from 43 million recorded for the same period in 2013.

“Non-interest income increased by eight percent due to the low increase in the number of transactions passing through the society’s various delivery channels,” Tsumba said.

However, operating expenses increased by six percent, with comparative growth limited by cost management initiatives implemented during the year under review.

“Consequently, the society’s cost to income ratio decreased from 63 percent in 2014 to 54 percent in 2015,” he said.

The society’s prudential liquidity ratio was at 36,8 percent from 36,4 percent, against the minimum regulatory ratio of 30 percent.

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