CBZ in solid performance

notching US$17,6 million in profits for the year to December 31 2010.
The group’s sound performance was largely attributed to its banking arm.
CBZ remains the country’s biggest bank in terms of assets, now sitting at US$687 million.
During the period under review, the group generated income of US$81 million with US$54,1 million coming from non-interest income.
Operating expenditure was restricted to US$54,3 million resulting in a record US$25,5 million in profit before tax.
The bank also topped other banks in loan advances to industry, after loaning out US$449,6 million, mainly through mortgage advances.
During the period under review, CBZ Bank entered into various partnerships with foreign banks to finance the private sector, which includes the US$50 million diaspora bond with the African Export and Import Bank.
CBZ Bank also remained in pole position in terms of deposits , which totalled US$578,4 million.
Zimbabwe’s total deposits were estimated at US$2,56 billion as at the end of December and 86 percent of these deposits are concentrated in the top four banks.
Currently, the country’s financial sector has 30 licensed banks.
It is estimated that an additional US$2,5 billion could be circulating outside the banking system, which financial institutions can tap into.
According to CBZ’s financial results, the private sector was advanced about US$49,8 million.
The agriculture sector received the biggest chunk of the funds, benefiting from US$117,5 million, followed by distribution at US$116,6 million.
The manufacturing sector received US$72,1 million with construction and transport sectors getting US$13,8 million and US$14,2 million respectively.
The services sector received US$47 million and the mining sector was allocated US$7,8 million.
Financial organisations received the smallest share of the funds with only US$609 907.
Solid performance by the financial sector is an indication that the transacting public have again gained confidence in the financial sector.
Robust performance in the sector also gives impetus to economic growth. However, the sector is still reluctant to offer long-term financing due lack of liquidity on the market.
During the period under review, most banks went through rationalisation and realignment of their business in line with the prevailing market conditions.
CBZ integrated its banking and mortgage arms, resulting in a staff rationalisation exercise with a payback period of two years being implemented.