CBZ Holdings seeks to grow income base, reports $5mln PAT in Q1

CBZ Holdings seeks to grow income base, reports $5mln PAT in Q1

HARARE, April 28 (The Source) – Zimbabwe’s largest local financial services group CBZ Holdings intends to increase contribution of its non-banking assets from 15 percent to 20 percent by the year 2019.

Group chief executive Never Nyemudzo on Thursday told the company’s annual general meeting that total revenue in the quarter amounted to $37, 3 million while profit after tax amounted to $5 million.

In the full-year to December 2015, it reported an after-tax profit of $35,2 million.

CBZ, which operates the country’s biggest retail bank, also runs insurance and asset management subsidiaries.

The group had recorded a strong performance in the first quarter to March, with the contribution by non-banking assets growing to 15 percent from nine percent in the same period last year, Nyemudzo said.

In the first quarter to March, total assets grew by five percent to $2, 1 billion while deposits also registered a five percent growth to $1, 8 billion.

Nyemudzo said the company would step up collection of bad debts and closely monitor borrower performance to limit loan defaults. In 2015, CBZ said it had written off $24 million in bad debts as the country’s deteriorating economy adversely impacts asset quality.

The group has appointed Elliot Mugamu as chairman, replacing Richard Wilde who retired on Thursday.