admin
chief executive Dr John Mangudya told an analyst briefing on Tuesday that following permission granted by shareholders at the company’s annual general meeting last year the group managed to buy back 10 percent of its shares.
Presenting the company’s financial results for the year to December 31, 2012, Dr Mangudya said of the 91 million CBZ shares traded on the Zimbabwe Stock Exchange last year, the company spent US$7 million to buy back 70 million of its own stock.
“Last time we had an Annual General Meeting here. The AGM approved a share buyback. We managed to do the share buyback, we bought 10 percent of the shares as approved by the shareholders,” said Dr Mangudya.
“First of all we are going to identify a strategic partner that we do believe can take those shares and in so doing also provide us with some capital, we are not going to sit on the shares,” he said.
The CBZ boss pointed out that the company would look for an investor with a business model similar to its own operations to ensure that this benefits its growth. However, CBZ commended current shareholders strong support.
Dr Mangudya said the 10 percent share buyback carried out last year had increased shares in CBZ’s treasury such that it was now the biggest holder of its own stock. Other major shareholders in the ZSE listed financial services group are Government, which has a 16,1 percent stake, Libyan Foreign Bank with 14,1 percent and the National Social Security Authority with 10 percent shareholding.
Dr Mangudya said its share register was also now cluttered and the group would take measures this year to consolidate the company’s shareholdings.
Commenting on developments during the course of last year, Dr Mangudya said that the group had managed to tie up an agreement with EcoCash to be its agent. He said the group also launched new insurance products. CBZ is now in the process of launching an educational development policy.
In terms of new bank regulatory requirements Dr Mangudya said that the financial services group was now fully compliant with provisions of the Basel II.
He said the bank was also now compliant with the dictates of the framework agreement that the Bankers’ Association of Zimbabwe agreed with the Reserve Bank on aspects of banking such as interest rates and charges. Dr Mangudya welcomed the Government announcement of its plans for banks to be exempted from tax on mortgage financing saying this would enable banks to commit more resources to customers in need of mortgage funding.
He added that the bank was aware of the liquidity crunch in the economy and last year actively engaged in mobilising offshore lines of credit to the tune of US$280 million. This year the bank would look for more investments to boost its asset company to enhance its capacity to bring in more offshore funding.
While maintaining products tailor-made for its big clients the bank said it would this year take deliberate measures to extend more credit to small and medium enterprises. It also plans to continue consolidate shared services to cut costs.
In the 12 months to December 31, CBZ posted a 48,4 percent jump in profit after tax to US$45 million while interest income rose by 43 percent to US$156,8 million.
Online Reporter