By ETimes
Highlights
- ZSE listed financial services concern CBZ group saw its Q1 2023 after tax profits rise by 959% in historic terms to ZWL$50.2 billion. Subsequently, Return on Assets improved to 23% and Return on Equity improved to 79.7%.
- Total revenues increased by 575% to ZWL$96.7 billion, while the cost to income ratio moderately worsened to 29.39%. During period, the group reported the launch of a new student card product and a new service allowing customers to access CBZ remittances on ATMs. The groups Gateway City Residential Project also began selling stands during the period.
- Total assets increased by 497% to ZWL$1.3 trillion and total deposits grew by 543% to ZWL$970 billion.
- The group reported that all of subsidiaries were adequately capitalized as on the 31st of March 2023.
- Looking forward, the group highlighted its focus on tapping into its resources to pursue emerging opportunities. The group will also explore ways to leverage on fast developing technologies in Artificial Intelligence to improve service delivery.
Our Thoughts
The group marginally increased its share of the total banking sector deposits to 34%. With its acquisition of ZB Holdings, the group’s position in the market appears strong and stable.
It follows that CBZ Holdings is currently pursuing another acquisition of a complimentary business. Analysis shows that in recent years, the group’s primary revenue drivers have been interest income, and fees and commissions. In the medium term, the prevailing high interest rates can be expected to continue driving growth in interest income. In the long term, as the monetary situation stabilizes the groups non-banking business will eventually come into focus. So, it will be imperative that the latest acquisition creates a new growth centre for the future or enhances the income capacity of existing business segments such as the insurance business. 
On the ZSE, since the start of 2023, the CBZ Holdings share has gained 571% in nominal terms and 1.8% in implied USD terms. The share currently trading at a P/B ratio of 0.46x – Harare