CBZ net income up 16,8% to $27,8m

CBZ Holdings recorded a 16,8% jump in net earnings to $27,8 million in the full year ending December 31, driven by the growth in net non-interest income. In the comparable year, profit-after-tax was $23,8m.

BY BUSINESS REPORTER

Net non-interest income grew to $91,39m last year from $69 million in 2016 with the bulk of the money coming from commission and fees. This growth in net non-interest smothered the group which recorded a decline in interest income to $152,9m last year from $181,1 million. Resultantly, the group saw non-interest income contributing 52,2% of the total income last year up from 43,4% in 2016 as CBZ cashes in on the use of electronic platforms in light of the cash shortages.

The tough economic environment has seen banks prudent on lending. The group was no exception with advances retreating by 6,5% last year at $941,4m. Deposits grew by 4,3% to $1,85 billion.

However, the group believes the benefits arising from the open environment were likely to remain subdued.

“The company will in the short to medium term place emphasis on productivity enhancements while exploring opportunities for growth in its various business value streams,” board chairman Noah Matimba said in a statement accompanying the financial results.

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