CBZ holdings has reported solid first-quarter 2021 results, positive momentum heading into the rest of the year.
Growth in customer loans by 133% and customer deposits by 14% underscore CBZ’s position as a reliable financial services provider within the economy.
The increase in income also represents an improved return on equity of 32.5% (Q1’FY20: 30.6%)
Financial services group, CBZ Holdings Limited, which recently indicated plans to list on the VFEX, started the 2021 financial year with good Q1 results.
CBZ Holdings, which is the holding company of Zimbabwe’s biggest bank by market value, CBZ Bank, saw a 23% increase in inflation-adjusted revenue to ZW$4.935 billion for the three months period ended 31 March 2021 (Q1’FY21), significantly ahead of ZW$3,996 billion recorded in the first quarter of the previous year (Q1’FY20).
Profit after tax increased to ZW$1.656 billion, representing an improvement of 56% from ZW$1.064 billion same period last year.
The increase in income also represents improved return on equity of 32.5% (Q1’FY20: 30.6%).
The improved result can be attributed to an increase in total deposits and total advances.
Customer deposits showed very good growth of 14% to close the period under review at ZW$77.126 billion, ahead of ZW$67.668 billion recorded in the same period last year. Total advances increased by 133% to ZW$40.432 billion compared to ZW$17.358 billion in the first quarter of the previous year.
Total equity position at ZW$21.071 billion scaled up 40% from ZW$15.041 billion in the previous comparable period while total asset position increased by 29% to 115.799 billion from ZW$89.969 billion in the same period last year in line with the increase in loans and advances.
As a going concern, the Management Board have engaged themselves to continuously assess the ability of the Group to continue to operate as a going concern in light of the COVID 19 pandemic.
“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,” reads a statement signed by Group Legal Corporate Secretary Rumbidzai Jakanani.
“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.”
Based on the positive developments in the first quarter, the Group says it will continue to increase visibility in its financial intermediation role within the economy while enhancing shareholder value in the process.
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