ZIMBABWE'S largest mortgage lender, Central African Building Society (CABS), is sitting on an unsecured parallel lending loan book of over US$127 million, while corporate banking loans including the Distressed and Marginalised Areas Fund stood at over US$100 million and the mortgage loan book at over US$130 million. This is despite the group's income dropping by 35,9 percent from US$11,2 million in June last year to US$7,2 million during the same period this year.
CABS chairman Leonard Tsumba cited high levels of non-performing loans, a slowdown in general economic activity, declining capacity utilisation, company closures and a negative balance of payments position as major drawbacks. According to the Old Mutual subsidiary's unaudited financial results for the six months to June 30, 2014, the company posted a net interest income of US$18 million, which represents a six percent increase from last year's US$17,1 million.
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