CBZ profit surges 55 percent
Zimbabwe’s largest banking group by assets and deposits, CBZ Holdings Limited’s after-tax profit for the quarter to March 31, 2021 rose 55 percent to $1,65 billion from $1,06 billion during the same quarter last year.
During the quarter under review the operating environment remained mostly stable with the official exchange rate remained largely around $83 against the US dollar.
This also led to stability in the pricing of goods and services during the period. The month-on-month inflation fell marginally from an average of 3,9 percent in Q4 2020 to an average of 3,7 percent in Q1 2021, whilst the year-on-year inflation rate fell notably from an average of 407 percent to an average of 308 percent.
Total revenue for the quarter came in at $4,9 billion representing 23 percent growth on comparable quarter.
At $21 billion total equity was 40 percent above the $14 billion recorded during the same quarter last year.
Total deposits for the quarter under review went up 13 percent to $77 billion compared to $67 billion recorded during the comparable quarter.
At $40 billion, total advances surged $135 percent from $17 billion recorded during the same period in 2020. On a year-to-date basis, total advances have grown by 23 percent while deposits are at 6,1 percent.
Group legal corporate secretary Rumbidzayi Angeline Jakanani, also highlighted all the group’s regulated subsidiaries are well capitalised and directors expect their banking subsidiaries to be compliant with the minimum revised requirements which deadline has been moved to 31 December 2021.
While the obtaining Covid-19 pandemic poses uncertainties and has already affected businesses across sectors, the group is positive of maintaining a good performance going forward. The roll
“Despite the negative impact of the virus, the Group has assessed that the pandemic will not have an inhibiting impact on its ability to continue operating as a going concern.
“The group will continue leveraging on its strong capital and balance sheet positions, deep understanding of the local markets, extensive investment in digital platforms to ensure sustainable growth of the business,” she said.
The group will also continue to increase visibility in its financial intermediation role within the economy while enhancing shareholder value in the process as the country’s economic prospects continue to improve with key fundamentals pointing towards sustained recovery on the back of a good agriculture season.
The International Monetary Fund (IMF) recently reviewed growth prospects for Zimbabwe to 6 percent this year on the back of a bumper harvest, increased energy production and resumption of greater manufacturing and construction activities, the International Monetary Fund (IMF) has said.-ebusinessweekly.co.zw
