CABS records net surplus of ZWL$429bn

This was also buoyed by the increase in foreign exchange gains of ZWL$375,80 billion against ZWL$28,76 billion as restated for June 2022 which compensated the monetary losses amounting to ZWL$82,02 billion, up from ZW$48,86 billion same period last year.

ZIMBABWE’S largest mortgage lender, CABS, recorded a 7 050% jump in net surplus to close the half financial year sitting at ZWL$429 billion, driven by an increase in net interest income due to growth in its loan book.

This was also buoyed by the increase in foreign exchange gains of ZWL$375,80 billion against ZWL$28,76 billion as restated for June 2022 which compensated the monetary losses amounting to ZWL$82,02 billion, up from ZW$48,86 billion same period last year.

In its financial statement for the half year ended June 30, 2023, the society said its gross loan book grew by 149% to ZWL$1,02 trillion from ZWL$0, 41 trillion in the same period last year.

“During the half year ended June 30, 2023, the society recorded a net surplus of ZWL$428,59 billion that was achieved same period last year,” it said.

Net interest income increased by 41% to ZWL$53,06 billion mainly driven by growth in the loan book.

During the period, net fee and commission income increased by 179% to ZWL$68,32 billion.

Net non-interest income grew by 723% to ZWL$562,03 billion in 2023 mainly due to a growth in US$ income along with exchange and fair value gains.

The society said employee welfare initiatives drove operating expenses up by 125% to ZWL$80,45 billion during 2023.

The society’s financial position improved with total assets increasing by 133% to ZWL$2,38 trillion.

Throughout the period, non-performing loans remained below 0,5 %.

CABS said the outlook remained uncertain with liquidity and exchange rate volatility coming through as the major risks for business operation.

“However, the society will continue to provide full banking services to its customers as support to the country’s economic development,” it added.-ebusinessweekly