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Oliver Kazunga Senior Business Reporter
LEADING mortgage lender, CABS, has recorded a 22 percent growth in total assets to $1,04 billion in the financial year ended December 31, 2015.
In a statement accompanying financial results for the period under review, the chairman, Leonard Tsumba attributed the growth in total assets to a 27 percent growth in deposits.
“Total assets increased by 22 percent from $852 million to $1,04 billion in 2015. This was mainly driven by deposit growth of 27 percent during the same period.
“The society’s total loans and advances increased by 27 percent from $444 million as at December 2014 to $562 million as at December 2015,” he said.
The mortgage lender, which is a unit of the Zimbabwe Stock Exchange-listed financial services group, Old Mutual Limited, during the period under review, also recorded a net surplus growth of $28 million up from $24 million realised in 2014.
Net income interest increased by 36 percent compared to the same period in 2014.
“Non-interest income increased by eight percent due to the low increase in the number of transactions passing through the society’s various delivery channels,” said Tsumba.
He said operating expenses during the period under review rose by six percent while comparative growth was limited by cost management initiatives implemented during the year.
“Consequently, the society’s cost to income ratio decreased from 63 percent in 2014 to 54 percent in 2015,” he said.
CABS’ prudential liquidity ratio was at 36,8 percent from 36,4 percent, against the minimum regulatory ratio of 30 percent.
On the outlook, he said the society continues to pursue new initiatives to enhance its role in housing and finance, and banking.
“As these initiatives are realised progressively, the society will continue remain positive as well as a progressive force in the country’s financial services sector. The society’s future prospects remain bright,” he said.
Last year, CABS completed one of the key housing development projects in Harare’s Budiriro high-density suburb. The project has 2,800 units.
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