CBZ posts ZW$33bn profit

INFLATION adjusted profit after tax at the Zimbabwe Stock Exchange listed financial services behemoth, CBZ Holdings (CBZH) rose by 25% to ZW$33 billion (about US$49,24 million at ZW$671,44 as at December 30 2022) during the year ended December 30 2022, driven by a rise in non-funded income, according to the firm’s financial statements.

This figure was ZW$26,4 billion during the comparable period in 2021, according to the group.

CBZH said lending activities also boosted its profits during the period.

It said revenue increased to ZW$43,04 billion (about US$64,1 million), a significant rise from ZW$32,5 billion in 2021.

CBZH chairperson Marc Holtzman said the period saw the group achieve major milestones, as Zimbabwe’s biggest banking group positioned to play a big role in driving economic growth.

He said the firm’s interventions were executed through microfinance, insurance, wealth management, risk advisory and properties, which were part of its broad strategy toward economic growth.

The CBZH boss noted that focus was also centred on improving customer experience through investments into digital solutions.

He said

CBZH’s wealth management unit, Datvest, added investment options to the group’s clients through the Datvest Modified Consumer Staples Exchange Traded Fund, a new product.

The completion of the Fairview housing project in Harare was also a key milestone that improved housing delivery in the country, according to Holtzman.

CBZH has also invested into housing projects across the country including in cities like Gweru, Mutare, Kwekwe and Victoria Falls.

“CBZ Bank leveraged on its huge balance sheet to support new and expansion projects in the mining, agriculture and infrastructure development sectors, among others, thereby maintaining its market leadership position throughout the year,” Holtzman said, as he shared the results with investors.

“On the agriculture space, CBZ AgroYield remains a key strategic partner in supporting the government's quest to make the country food self-sufficiency.”

He said the operating environment in Zimbabwe was volatile during the second quarter of the year under review.

However, significant exchange rate and price stability was achieved from the end of the third quarter, following the enhancement of tight fiscal and monetary policy stances by the authorities.

Holtzman added that record high diaspora remittances of US$1,6 billion during the review period continued to propel private consumption and investment, especially in the residential construction sector.

Diaspora remittances are expected to continue playing a significant role in propping up private consumption and demand going noted.

“The intended continuation of the multicurrency system, in line with the National Development Strategy, is also expected to enable the group to offer solutions that speak to the evolving business models of its clients,” he said.

The government expects the economy to grow by 3,8% in 2023, supported by pent up demand in the hospitality sector, thanks to an emerging middle income class and continued resilience and investments in the mining and construction sectors as well as progression of projects in the energy and iron and steel sectors.

Holtzman said the group would continue to invest in building its capacity and ability to continuously meet the increasing demands of its wide range of customers.

CBZH’s assets increased by 46%, settling at ZW$955,09 billion (about US$1,42 billion) during the review period.

Total equity increased by 37% to ZW$168,5 billion (about US$251,1 million), while total deposits rose by 50,7% to ZW$680,39 billion (about US$1,01 billion). forward, the

CBZH chairperson