CBZ Holdings Limited recorded a 20% decline in profit after tax to $12,8 million in the six months ended June 30 compared to the same period last year as expenses rose more than total income.
In the same period last year, profit after tax was $16 million.
Total income for the group grew to $69,6 million in the period under review from $69,1 million in the comparable period.
Operating expenditure grew to $46 388 803 from $42 094 083 during the same period last year.
In a statement accompanying the group’s financial results, CBZ Holdings Limited chairman Richard Wilde said the underlying economic growth trends remained subdued during the period under review with investor confidence at a low level.
Wilde said this had resulted in deposits becoming more short term in nature, low foreign direct investment and high cost of capital.
“Against the backdrop of a slowdown in the domestic economy, the financial services sector remained under pressure and continues to grapple with increasing levels of non-performing loans as a result of the worsening repayment capacity of borrowers,” he said.
The aggregated industry’s non-performing loans grew from 16% of lending in December 2013 to 17% as at the close of March 2014,” Wilde said.
Net interest income declined to $41 million during the six months’ period from $43,9 million over same period last year.
Total deposits grew to $1 457 181 529 as at June 30 recorded during the same period last year.
Total assets increased to $1 693 369 599 in the period under review from $1 558 667 011 in the comparable period last year.
Advances grew marginally to $1 043 970 670 from $1 028 118 742 as the group tightened on lending due to the increased default rate in the banking sector.
CBZ Holdings Limited is a financial services conglomerate which has subsidiaries in banking, insurance, investments, wealth management, mortgages and retail finance.