Economic situation remains under check, CBZ
CBZ Holdings says measures by the government and the apex bank to curb inflation and stabilise the economy, will help keep the economic situation in check and provide the much needed relief.
The group’s chairman Marc Holtzman, said the stable economic environment obtaining will provide the financial institution with opportunities to actively participate in the economy.
“We remain optimistic that these steps will help keep the economic situation in check and provide the much needed relief,” he said.
Holtzman said sectors such as mining and construction are expected to remain fairly strong and resilient, whilst recovery in the tourism and aviation sectors may be further catapulted by pent-up demand as tourists travel far and stay longer.
As a result, he said that the Group will continue to closely monitor these developments in order to better meet the expectations of its customers, employees, shareholders and all stakeholders.
The local economy has been hinged on the government’s ability to continue to control money supply as well as insulate the economy against global supply and inflation shocks.
Authorities have resolved to maintain a tight monetary policy stance in response to rising inflation and exchange rate instability. As a result, of late the country has witnessed relative stability in the foreign currency exchange rate.
However, during the interim period under review, the group posted a $17,5 billion inflation adjusted net profit after tax with the performance being a 147 percent rise from the 2021 comparative period figure of $7 billion.
Holtzman said that the performance was supported by a 244 percent rise in net interest income to $20,5 billion, while non-interest income rose by 179 percent to $73,1 billion.
During the period under review, growth in the insurance business was more subdued with net-underwriting income flat at $612 million.
Growth in the group’s customer deposits was flat at $288,7 billion, while the gross loan book grew by 52 percent to $213 billion.
Holtzman said that the loan book remains significantly concentrated in the agricultural sector, with the sector accounting for 62 percent of the book while the services account for the majority of the group’s deposits with a 58 percent contribution.
During the period under review, the commercial banking unit remained the group’s primary profit center with a net profit before tax of $13,5 billion.
The Agro-business unit also contributed significantly with before tax earnings of $12,8 billion.
The Asset Management and Insurance business segments registered the highest earnings growth in the period at 2129 percent.
By contrast, the microfinance segment had the highest decline, with the before tax earnings falling by 164 percent to return a loss of $377,1 million.-ebusinessweekly
