BY MTHANDAZO NYONI
CABS Bank, a subsidiary of Old Mutual Zimbabwe, says it remains committed to capacitating the private sector, but will not be expecting any growth in its $800 million loan book as it has not secured any new lines of financing.
In emailed responses to NewsDay Business, the bank’s managing director Simon Hammond said the bank disbursed more than $400 million to the private sector in 2018.
“We disbursed more than $400 million to the private sector in 2018. Total loan book grew by 19% to $816 million; however, we are not expecting much growth in the loan book this year. We have not yet secured new credit lines in 2019,” he said.
Going forward, Hammond said the building society would continue to offer value chain-based financial packages comprising lending, investments and transactional business through digital channels as well as Bancassurance.
“We believe these will drive the business into the future. Revenue growth is expected from non-funded income due to volume and value increases.”
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Hammond said they had developed 1 200 stands in Nkulumane and Pumula South suburbs of Bulawayo with 350 stands having been sold to date.
The construction of the houses, done under the Old Mutual Housing Fund, is aimed at helping ease accommodation challenges in the country.
The first project, under a similar fund, was done in Budiriro, a high-density suburb in Harare, where 2 795 houses were built.
The Budiriro Housing Project saw Old Mutual, through its subsidiary, injecting $15 million.
Hammond said the Budiriro Housing Scheme was received well following the introduction of the new terms and conditions, with most houses having been sold.
“Currently, there are no projects running. We are seeking opportunities for land development,” he said.