23 January 2018
   
ZRP ‘Idiot’ Charamba loses cop insult case
Gukurahundi: Blame govt, not me – says ED
SA: Jazz legend Hugh Masekela dies
Cholera: Angry minister blasts city councils
Mzembi challenges arrest; quits politics
Mudzuri: Amnesty for MDC-T cop murder 3
Mnangagwa: Grace mentally unstable
ZESA gave Chivayo $7m, not $5m: Parly
MORE NEWS
Govt reduces excise duty on fuel
Filthy 5-Star hotels: Economy blamed
MORE BUSINESS
‘Am I African’ explores Zim's race conflict
Gafa’s Epworth concert draws thousands
MORE SHOWBIZ
Billiat might still leave: Sundowns coach
Katsande: Chiefs show championship mentality
MORE SPORTS
Mnangagwa’s ‘New’ Zim merits support
Zhuwao: kleptocracy and EDiots in Davos
MORE OPINION
 
Mnangagwa off to Davos empty handed
Economy: the need for a paradigm shift
MORE COLUMNISTS
 
 
CBZ after tax profits decline 43pc
01/05/2014 00:00:00
by The Source
 
 
RELATED STORIES

ZIMBABWE'S largest financial group CBZ Holdings has reported a 43,7 percent decline in after-tax profit for the first quarter ending March 31, compared to the same period last year, dragged by a drop in income and accelerating impairments, the group announced on Wednesday.

Incoming group chief executive Never Nyemudzo told shareholders on Wednesday during the company’s annual general meeting that the slowdown in economic growth had affected operations. Nyemudzo replaces John Mangudya who was appointed Reserve Bank governor with effect from May 1.

Total income dropped to $34,4 million in the during the period under review to $37,2 million recorded during the same period last year. Underwriting income was flat at $1,7 million.

“The first quarter under review has been largely characterised by liquidity challenges. This has somehow increased the cost of doing business primarily coming out of increased cost funds for the bank. As a result we are seeing pressure on our customers meet their obligations on time,” Nyemudzo said.

The group’s total deposits were up 36 percent year on year to $1,427 billion with loans and advances growing to $1,079 billion from $934,1 million in March 2013.

Total expenditure rose to $23,3 million from $21,2 million while the charge for impairment was up 52 percent to $3,8 million.

Despite taking a knock during this period, Nyemudzo sees the group’s after tax profit for the full year growing by five percent.

He said the group will in the coming year focus on taking a conservative lending approach and growing its housing project to boost revenues.

CBZ Holdings has embarked on the first phase of the 1095-stand Nehosho high density suburb in Gweru. The housing project, which is set to be completed in the next eight months, will cost $8 million, Nyemudzo said.

Commenting on the planned $200 million bond, he said plans to raise the capital were now at an advanced stage.

In February, CBZ Holdings announced plans to issue a $200 million bond, double what it raised in the fixed income market last year, to boost its underwriting capacity.



Advertisement


 
Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it

Del.icio.us

Reddit

Newsvine

Nowpublic

Stumbleupon

Face Book

Myspace

Fark

 
 
 
comments powered by Disqus
 
RSS NewsTicker