CBZ profits surge to US$13,6m

percent jump in profits to US$13,6 million for the interim period ended June 2011 compared to US$6,4 million last year.
Speaking during an analyst briefing, group chief finance officer Mr Never Nyemudzo said CBZ is targeting a growth in income to US$134 million and total deposits of about US$900 million by year end.

Operating income for the period ending June was US$54,8 million compared to US$34,5 million.
The board declared an interim dividend of 0,12c per share. Group managing director Mr John Mangudya said CBZ will maintain the Libya Foreign Bank shareholding in the group.
Libya Foreign Bank controls 14,1 percent of CBZ with the Government owning 16,1 percent and Africa Investments Sub 2 with 13,5 percent.

“If they decide to sell, there are takers, but right now we will keep the investment,” said Mr Mangudya after the briefing.
“It’s like any other investment, if they do not sell then it’s fine. But this investment does not belong to a single person but belongs to the Libyan people.”
Total deposits for the six months stood at US$814 million up from US$578 million in June last year.

The services and private sector were the biggest contributors to deposits, constituting 25 percent and 16 percent of total deposits.
CBZ has maintained its market share of 26 percent and they also lead the market in terms of deposits taking up more than 16 percent of the total.
As at June the group was sitting on US$130 million long-term lines of credit – a facility that is expected to fund different sectors of the economy, and two additional facilities are expected soon.

Mr Nyemudzo said a total of US$40 million came from the PTA Bank with Afreximbank weighing in with US$35 million.
The biggest chunk of the money came from the Zimbabwe Economic Recovery Bond with US$50 million. Other financiers poured in US$5 million.
CBZ’s loan book has remained strong with total advances for the six months growing by 48 percent to US$632 million from US$444,6 million in June 2010.

Non-performing loans for the period stood at US$8,1 million representing just 1,2 percent of the loan book.
Mr Nyemudzo said 30 percent of the book went towards the agriculture sector and about 10 percent went to the private sector.

CBZ’s mortgage loan book stood at US$30 million as at June 30, with insider loans amounting to US$1,2 million.
During the period under review the banking arm of the group managed to list the Zimbabwe Economic Recovery Bond on the Cayman Islands Stock Exchange.
CBZ Life Limited, a subsidiary of the group, started full operations during the first half of the year after obtaining all the necessary regulatory approvals.