The Herald (Harare)

Zimbabwe: CBZ Nets U.S.$18 Million

CBZ Holdings basic earnings per share jumped 34 percent to US2,92c after the group posted US$18,3 million in after-tax profits in the interim period to June 30, 2012. The growth in profits comes on the back of a 19 percent increase in deposits as advances moved a mere 0,7 percent against 42,2 percent in the corresponding period last year.

The group's profit before tax also increased by 19,3 percent over the period under review, compared with the same period the previous year.

Chairman Mr Luxon Zembe said the group was happy with the progress in consolidating operations to enhance profitability.

"I am encouraged by the group's progress in consolidating activities within the group. Synergies created among subsidiaries resulted in improved group performance," he said.

Deposits rose 18,9 percent to US$985 million from US$829 million while advances totalled US$789 million from US$790 million over the comparative period last year.

Non-interest income to total income ratio dropped to 35 percent from 39 percent in the interim period to June last year.

Income totalled US$64 million from US$54 million over the same period last year with interest income constituting 62 percent.

The group said interest expense weighed in at US$26 million from US$14,6 million last year.

CBZ Insurance managed US$4,6 million gross premium income and US$1,3 million net written premium in the interim. Comprehensive income for the period totalled US$157 000. But underwriting income came in at US$233 000.

Datvest, a member of CBZ, had total income vaulting 445 percent to US$14,6 million, but still fell to a US$130 718 loss. CBZ extended US$244 million to agriculture, US$208 million to distribution, US$125 million to manufacturing, US$89 million to services and US$85 million to consumer loans.

The transport sector absorbed US$28 million, mining US$16 million, communication US$12 million and construction US$5 million while financial organisations received US$1,8 million.

About US$404 million of its advances mature on demand, US$29 million in three months, US$81 million in three months to a year, US$208 million in one to five years and US$93 million after five years.

The CBZ Holdings stock opened the year at US$0,14 and reached a low of US$0,50 before rising to close the period at US$0,90.

With a total of 684 million shares in issue, the company reached a market capitalisation of US$62,3 million at the close of the half-year.

Approximately 30,3 million of the company's shares changed hands during the period under review.

The balance sheet closed the half-year at US$1,173 billion compared with US$1,055 billion in the six months to June 30, 2011.

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