CBZ reports $37m turnover in Q1

Business Reporter
CBZ Holdings reported turnover of $37 million in the first quarter as the group stepped up efforts in collecting bad debts coupled with strict credit granting and close monitoring of borrower performance.

As a result of the strong top line performance, profit for the period amounted to $5 million.

Chief executive Never Nyemudzo told the group’s annual general meeting yesterday that the market continues to experience liquidity shortages, high credit risk and increasing informalisation of the economy.

“However, in response, CBZ Holdings remains committed to creating strategies that take advantage of the transitional opportunities in the small to medium enterprises sector.

“Despite a number of challenges, the group registered commendable numbers in the first quarter with total revenue of $37,3 million and profit after tax of $5 million.”

The number of transactions during the period grew 21 percent to $4,2 million from $3,4 million in the quarter last year reflecting an increased use by clients of both CBZ Bank platforms and products.

Mr Nyemudzo said the first quarter had shown strong growth and resilience in the statement of financial position with total assets having grown 5,2 percent to $2,1 billion supported by growth in deposits of 5,5 percent to $1,8 billion .

CBZ Holdings is also looking at increasing efforts in terms of income diversification by focusing on growing the contribution of non-banking assets.

Mr Nyemudzo said the group takes pride in leading by example in trying to reduce the cost of doing business for the corporate world of Zimbabwe.

“We are going to step up efforts in collecting bad debts and strict credit granting and close monitoring of borrower performance,” he said.

Mr Nyemudzo said innovation remains key to the group’s strategy to support customer retention.

“We are going to promote innovation and strengthening of our synergies as today we announce Zimbabwe’s first integrated mobile application which is also supported by 24 /7 contact centre,” said Mr Nyemudzo.