CBZ Holdings Limited is sitting on a phenomenal US$71,5 million as at June 30, 2010 emerging the country’s most capitalised financial institution. |
The commercial bank is capitalised at US$43 million, the Building Society US$22 million and the Asset Management US$1,2 million.
commercial banks, building societies and asset management companies are required by the Reserve Bank of Zimbabwe to meet minimum capital thresholds of US$12,5 million, US$10 million and US$500 000 respectively.
For the six months to June 30, CBZ produced a good set of results posting US$6,4 million in profits with 72 percent coming from non-interest income and 28 percent from interest income.
The profits were, however, weighed down by consolidation costs of CBZ Building Society into the bank at US$2,6 million.
Briefing analysts in Harare, Group Chief Executive, Mr Nyasha Makuvise said the company has embarked on a massive diversification drive that is going to open up revenue streams for the group.
"The group is going to diversify to improve income and enhance advisory business with more bias to corporate financing and investment banking," said Mr Makuwise.
CBZ would, in the remaining part of the year, be working on increasing loans and mortgage financing.
Cost to income ratio for the period was 71 percent compared to 59 percent to the comparable period and 63 percent in December last year.
The upward trend was caused by a staff rationalisation exercise that the group embarked on during the period.
Operating expenditure for the period was US$24,4 million with staff costs taking up US$12,8 million.
Total income for the period grew 140 percent to US$43,5 million compared to US$14,3 recorded in the comparable period.
During the period under review total deposits grew by 31 percent to US$472,$421,604.
A sectoral analysis of deposits indicate that US$190 million came from the services sector, US$65 million from the distribution with the list coming from the mining sector with US$2,8 million.
Total advances for the period amounted to US$323,4 million with the biggest chunk of the money going to the private, agriculture and distribution sectors.
Impairment of advances for the period stood at US$4,3 million — these are loans the group is not sure the clients will pay back as agreed.
CBZ proved to be the biggest bank in the country by maintaining the pole position in deposits, controlling 25,8 percent of the market, 32 percent in advances and 27 percent on total assets.
Shortage of cash on the market has affected economic development and the dry spell is expected to continue in the short term.
Local financial institutions lack the capacity to advance long-term financing to companies as the country is finding it difficult to access offshore funding due to political differences with Western countries.
Zimbabwe requires about US$8 billion to recapitalise all sectors of the economy but the coffers have remained dry.