CBZ reports strong financial position, despite profit decline
CBZ Holdings says it ended the half year to June 2024 reporting period in a strong financial position anchored by customer deposits and loans to customers totalling ZiG 17.59 billion.
In a statement accompanying results, Chairman Luxon Zembe said, “The group maintains a strong financial position of ZiG17,59 billion, supported by a customer deposit base of ZiG11,50 billion and advances to customers totalling ZiG4,76 billion.”
This comes as the group’s investment and insurance products saw a significant increase in demand, while transactional, loan, and deposit activity also demonstrated growth.
Having consistently delivered the financial services needs of over 1 million customers, the chairman attributed the performance to the company’s robust strategy.
“This performance was buttressed by our customer-centric approach to nurturing relationships with our customers, accessible and reliable digital platforms, enhanced disbursements, and a diverse product offering to address the financial needs of our valued customers,” said Zembe.
According to the statement, CBZ concluded the period with a robust capital base, and all subsidiaries were adequately capitalised.
“We are determined to continue our focus on innovation, our strong dedication to ensuring customer satisfaction, and our solid market position to maintain our competitive edge in the industry,” Zembe said.
However, CBZ Holdings’ profit after tax closed the half-year period at ZiG 656,3 million, a 47 percent decline from ZiG 1,2 billion realised in the same period last year.
The group also achieved key milestones in the six months under review including commissioning the Datvest Northgate Property Investment Project, a US$150 million mixed-use housing project encompassing 8 000 stands comprising residential, shopping centres, schools, and civil services that feature smart living spaces, green infrastructure, and luxurious amenities.
The project, targeted for completion in 18 months to December 2025, has already begun with civil works such as land clearing and roads.
During the period under review, the bank raised an additional US$115 million in lines of credit from strategic partners including the Africa Export-Import Bank (Afreximbank), Shelter Afrique and TDB Bank, to meet the economy’s growing funding demands.
On the digital space, CBZ enhanced the digital platforms with various value-added services including launching the CBZ Digital Mall, a banking service transactional platform that combines bill payments and shopping options for the convenience for both CBZ and non CBZ customers.
In their outlook, the chairman said, “The prospects of better rainfall during the 2024/25 season are expected to boost activity in the agricultural and related sectors, going into the summer cropping season.
“The Government is also expected to continue with the public infrastructure investment program, whereas private sector construction projects in the residential and industrial segments are expected to remain strong, buoyed by significant inflows of diaspora remittances and free funds.”
Moving forward, the group plans to further adjust and align its business model to generate long-term value for its stakeholders.-ebsinessweekl
