CBZ posts 18,3% increase in income

FD Never Nyemudzo said the income was 31,5% of last year’s earnings.

Nyemudzo told shareholders at an annual general meeting that the group posted a profit of US$10,6 million, which was a 34,9% of the proportion of the full year earnings to December and 5% up year-on-year.

He said the group’s performance since the beginning of the year was encouraging, adding that it was 30% of what the group expects in the second half of the year.

The group’s expenditure totalled US$23,1 million, up 26,9% from US$18,2 million.  The cost to income ratio at 59,5%, was expected to even out towards the group’s full year target of 55%.

At CBZ Bank, total assets had grown a modest 2,4% since the beginning of the year to US$1,081 billion but had risen 53,7% against the comparable year ago period.

Total advances were down 1,1% to US$781,6 million, which Nyemudzo said was in line with the strategy to restrict the growth in the loan book to just 5%, adding that this in turn supports the liquidity ratio which was at 32,6% as at May 25.

Impairments were at US$46 million after the group had collected US$2 million since the year end figure of US$48 million. In the year to December, advances were US$790,3 million, up 77,8% from US$444,6 million and total deposits were up 43,5% to US$829,9 million.

Total deposits were at US$859 million, up 3,5% in the year to date and 43,5% year on year.

The loans to deposit ratio was down to 89,5% as at May 25 from 95% as at December last year and 91% as at April 30.

Funds under management were up at $87,7 million a slight decrease of 0,6% year to date from US$88,2 million.

Gross written premium in the group’s insurance business had increased by 108,7% to US$4,8 million. Insurance assets totalled US$3,6 million from US$1,5 million last year.

The CBZ group’s eturn on assets was at 3,9% against a local average of 2,5% and regional of 1,3%. Return on equity was at 21,1% against 25,4% in December.

The group reiterated its income growth forecast of 10%. Total deposits are expected to grow 48% while funds under management are forecast to increase 40%.

In the year to December, CBZ reported a 42% increase in attributable profit of US$33,2 million compared to $23,4 million for year 2010, driven by an increase in net interest income from US$44 million to US$75 million. –– Staff writer.

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