FINANCIAL services group CBZ Holdings (CBZH) has reported a 10% slump in after tax profit to US$33 million for the year ended December 2014 after a decline in interest income coupled with growing operating expenses, the group’s latest annual report shows.
Despite growth in total income to US$154,6 million in 2014 from US$150, 5 million the previous reporting period, profit before tax stood at US$37 million, down from US$42, 2 million prior year after a US$10 million growth in operating expenditure to US$98,7 million.
The rise in operating expenses followed a US$5 million growth in staff costs to US$53,7 million and a US$3 million growth in administration expenses to US$35,6 million. Depreciation stood at US$7,4 million, up from US$5,4 million prior year.
The group’s growth in total income was largely a result of a US$10 million growth in non-interest income to US$58, 1 million, up from US$48, 1 million at the end of 2013. Underwriting income also grew by US$1 million to US$8, 1 million in the reporting period. However, net interest income slid to US$88, 4 million, down from US$95,3 million prior year, according to the results statement.
The group’s total deposits grew by 6, 3% year on year to US$1, 4 billion while total advances grew 9,5% to US$1,125 billion.
Basic earnings per share for the group slid from US$0,063 in 2013 to US$0, 056 during the period under review. Non-interest income to total income was at 42,8% compared to 36,7% the prior year while the cost to income ratio stood at 63,8% compared to 59% in 2013.
Return on assets was 2, 3% compared to 3% prior year while return on equity stood at 15% down from 20%.
CBZ Bank reported a US$16,3 million after tax profit for the year, down from US$17, 5 million in 2013. Net interest income for the bank slid to US$70,6 million from US$79,5 million while non-interest income grew to US$46,2 million from US$37 million prior year after a US$10 million growth in commission and fee income during the reporting period.
CBZ Life posted a US$2,6 million after tax profit, down from US$3,3 million the previous year while CBZ Insurance reported a growth in after tax profit to US$514 597, up from US$440 971 in 2013. Datvest’s after tax profit was US$342 609 down from US$361 847 prior year.
Chairman Richard Wilde said going forward the group is banking on government’s expeditious implementation of measures to address the country’s external debt situation, high risk premium, cost of doing business, infrastructure deficiencies and challenges in the financial services sector.