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CABS recorded a 22 percent drop in profit in the year to December 2013 mainly weighed down by the prevailing operating environment characterised by liquidity challenges and a slowdown in economic activity.
Net profit dropped from $23,70 million recorded in the year ended 2012 to $18,30 million recorded in the year ended December 2013.
“High level of non-performing loans, slowdown in economic activity and declining capacity utilisation and a negative balance of payments position led to the drop in net surplus,” the company said in its results statement
Revenue for the company increased by 10 percent from $29,8 million to $32,7 million for the year ended 2013.
This increase was also brought about by another 16 percent increase in loans and advances.
The company added that net the revenue contributed 56 percent of the society’s total income in line with CABS’ focus on lending and housing scheme.
Operating costs for CABS increased by 33 percent from $28,3 million recorded in 2013 to $37,5 million recorded in the current period under review mainly due to the impact of business growth on staff costs and other administration costs. Total assets increased by 28 percent from $488 million to $623 million.
“This was driven by deposit growth of 30 percent and with the increase of loans and advances by 16 percent from $278 million as at December 2012 to $322 million as at December 2013,” the company said.
CABS said it remains prudent when lending funds to various sectors of the economy.
Total liabilities increased by 29 percent from $393 million recorded in the year ended 2012 to $507,7 million in the period under review.
In addition total liabilities and equity increased by 27 percent from $488 million for the year ended 2012 to $623 million in 2013.
As part of the company’s long term investments, CABS is nearing the completion of its $62 million low cost housing scheme in Harare’s Budiriro area with the first batch of 3 102 units scheduled to be handed over to the buyers in the first quarter of 2014.
The project is part of CABS five year plan to produce 15 000 low income housing units across the country.
“This is a project targeting first time home owners in the low income bracket and we hope that through this project and many others Zimbabweans will realise their dreams of owning homes,” said the company.
Online Reporter