Payday for CBZ shareholders

HARARE - Shareholders of Zimbabwe’s largest financial services group by assets, CBZ Holdings (CBZ), are smiling all the way to the bank after the group declared a $1,8 million dividend for the year to December 31, 2017.

The group’s company secretary Rumbidzayi Jakanani said the payment was slated for May 11, 2018.

“Notice is hereby given that the board declared a final dividend of $1,76 (0,25658) for the year to December 2017 in respect of all the ordinary shares of the company.

“The dividend will be payable in full to all shareholders of the company registered at the close of business on May 4, 2018,” she said.

The dividend under review was a 10 percent growth from the prior year.

Jakanani pointed out that the group’s shares were to be traded cum-dividend on the local stock exchange up to the market day of April 30, 2018 and ex-dividend beginning May 2, 2018.

This comes as CBZ recorded a 16,8 percent jump in net earnings to $27,8 million in the full year ending December 31, driven by the growth in net non-interest income. In the comparable year, profit-after-tax was $23,8 million.

According to the institution’s financial results for the period under review, total income improved to $175 million compared to $159 million as at December 31, 2016.

The group’s financial results also indicate that underwriting income contributed 4,6 percent while net interests income and non-interest income contributions were 43,2 percent and 52,2 percent respectively.

CBZ Holdings’ total deposits also improved by 4,2 percent to $1,85 billion from $1,78 billion in the prior year as advances fell by 6,5 percent to $941,4 million on the back of cautious lending with net interests income contributing 52,2 percent.

Total assets increased by five percent to $2,2 billion from $2,1 billion in the previous year.

This comes as CBZ Bank’s overall loan book has grown to about $941 million as it continues to support different sectors of the economy.

CBZ group acting chief executive Peter Zimunya recently said their loan book was growing and they would continue contributing towards economic development.

“We are in every sector. We have got a micro-finance support arm, we have got an SME arm, we have got a unit business banking which caters for SMEs. Then we have got the corporates,” Zimunya said recently.

“So the entire spectrum and it doesn’t matter which sector you are in, be it agriculture, mining, whatever, infrastructure development, energy, we come in. We just look at the viability of it and we go in.”

“Our total loan book it’s now at $941 million. If you look at the $941 million its actually coming from a zero, isn’t and we are the first bank to lend. So our $941 million, we are actually at about a billion, it’s actually from zero,” he said.

— The Financial Gazette

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