CBZ Holdings group has recorded a standstill profit after tax of a meagre 0,8% to $11,95 million in its half-year results ending June 30 2017, with cash and foreign shortages contributing to the sluggish performance.
BY TATIRA ZWINOIRA
During the same period last year, the group registered a profit of $11,92 million.
Speaking to NewsDay on the sidelines of an announcement of the group’s half-year financial results last Thursday, CBZ Holdings group chief executive officer, Never Nyemudzo said cash challenges contributed to the sluggish performance.
“We are quite blessed to have clients, who have been supporting us despite the fact that they may not get as much as they would have wanted, but still want to continue to be loyal to the bank,” he said.
“Our thrust is to continue to deploy more of these e-platforms so that the issue of cash can become less and less. But, again, when you deploy these e-platforms you also have to speak to the issue of costs. What costs are people transacting on these e-platforms? That is why in our branches we are putting in self-service centres.”
The profit for the period remained stagnant due to a host of challenges including foreign currency shortages, constrained credit expansion, informalisation of the economy, and constrained ability to adequately plan ahead.
Apart from the profit after tax, the group’s net interest income also grew to $39,69 million in the period under review from a comparative of $38,62 million in 2016.
Treasury bills factored into the increase in net interest income as accrued interest from Treasury Bills (TBs) was up to $13,27 million as at June 30, from $8,89 million as at the end of 2016.
As such, CBZ Holdings had TBs worth $814,5 million at the end of the first half, from $751,64 million recorded at end 2016.
In terms of cash, CBZ Holdings reported a 5,97% decline in cash at their banks to $8,86 million as of June 30 from 2016’s comparative $9,42 million. The decline came despite the group’s liquidity ratio being 72,8% way above the minimum 30% threshold.
The decline in cash balances at CBZ bank came as it experienced an 11,17% increase in active bank accounts to, 408 000 at the end of the period under review from 367 000 at the end of December 2016.
CBZ depositors are expected to move to more e-platforms going forward.
The CBZ group also reported a huge drop in their nostro balances to $1,9 million as at June 30 from $18,87 million recorded at the end of December 2016.