CBZ Holdings sees rebound
CBZ Holdings Limited chairperson Marc Holtzman says he is predicting a quicker rebound during full year to December 31, 2021, after profit after tax at the country’s biggest financial institution slowed by 54% during the half year ended June 30.
The Zimbabwe Stock Exchange-listed financial services outfit was also caught up in COVID19-induced headwinds which locked down Zimbabwe for the better part of this year, following a difficult 2020 in which the entire global economy came to a standstill.
The blue-chip reported a $2,4 billion post-tax profit during the period, compared to $3,7 billion during the same period last year.
“With a strong asset base, and well capitalised subsidiaries, the group remains in a favourable position to continue to invest in agile business processes which are geared towards quality client service, even during the COVID-19-induced limitations.”
“Despite persistent headwinds emanating from COVID-19 virus mutations, resurgences in infections and vaccine hesitancy, the economy continued to exhibit signs of macroeconomic stability and recovery during the period under review,” Holtzman said.
“The trends largely reflected the continuation of a tight monetary policy stance and fiscal restraint by the authorities, as well as the benefits of an improved agricultural season, enhanced foreign currency management through the auction system, pent up remittances inflows and commendable resilience by businesses in the face of the COVID-19 pandemic,” Holtzman said.
Total comprehensive income slowed to $2 billion during the review period, from $5,2 billion previously, but net interest income, the revenue that banks generate from extending loans to the market, improved to $2 billion, compared to $1,4 billion during the same period in 2020.
The CBZ boss said deposits increased to $100 billion during the review period, compared to $78,6 billion in December 2020.
Lines of credit relating to borrowings from foreign banks was $421,4 million.
Holtzman’s optimism could be stemming out of recent developments on the acquisition front.