Improved funding boosts CABS loans

ZIMBABWE’S largest mortgage lender, Central African Building Society (CABS), says its total loans and advances increased to $278,16 million in the full-year ending December 31 2012 due to improved mortgage funding.

TARISAI MANDIZHA

In 2011 loans and advances amounted to $194 million.

CABS is a subsidiary of Old Mutual Zimbabwe.

Old Mutual Zimbabwe is in turn a subsidiary of Old Mutual PLC, an international financial services conglomerate with interests in South Africa, the United Kingdom, the United States, Kenya, Botswana, Namibia and Zimbabwe.

In a statement accompanying financial results, CABS chairperson Leonard Tsumba said the loan book included a total of $97,04 million for 10-year mortgages issued since the beginning of August 2010.

CABS recorded a surplus of $23,74 million in the period under review due to improvements in both interest and non-interest income.

The bank’s net interest income increased by 28% in line with increase in loans and advances.

“Net interest income contributed 57% to the Society total income indicating a return to the Society core business,” Tsumba said.
He said non-interest income increased by 27% mainly due to an increase in the number of transactions through the Society’s various delivery channels.

During the period under review, operating costs increased by 10%. The cost to income ratio was 56% down from 63% recorded in 2011.
Tsumba said the total assets increased by 46% in 2012 driven by deposits growth of 52% during the same period.

He, however, said the economy was estimated to have grown by 4,4% in 2012 down from 9,3% in 2011.

“Economic growth is, however, expected to continue through 2013, underpinned by strong growth in the mining and agriculture sectors of the economy,” Tsumba said.

He added that CABS had reopened eight branches to make banking more accessible throughout the country.

The banking sector deposits increased from $3,3 billion at December 2011, to $4,4 billion last year.

5 Responses to Improved funding boosts CABS loans

  1. jon March 22, 2013 at 12:54 pm #

    Slowly things are getting better soon we all will be getting mortgages to build dream homes better than the UK

    • Tafadzwa March 24, 2013 at 6:26 am #

      What can be done in Zimbabwe better than the UK ? I cannot imagine anything being bild in Zimbabwe that can structually or visually look better than in UK. Even with UZ trained engineers, how many years will it take to get to UK standards ?

  2. Blessing March 24, 2013 at 11:11 am #

    fuck you

  3. Blessing March 24, 2013 at 11:13 am #

    we can do better than u.k bitch

  4. nevergoingto ownahome March 26, 2013 at 1:01 pm #

    This is not news. I am 35, living in Zim, and my wife and I are unable to get any kind of mortgage from the banks including cabs even though we have both been with our same (so-called reputable) employers for the last ten years. I don’t know who is accessing these funds but clearly there is still insider dealing going on. Real situ on the ground is there are 20 people getting $10million each = $200 million in lending. Lets keep things in perspective Newsday. You are actually reporting this as if CABS is doing society a service.

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