By ETimes
HARARE – ZIMBABWE’S top mortgage lender CABS showed resilience in 2024, achieving fee income growth and sustaining dividends despite economic challenges and tight liquidity.
The financial institution successfully grew its loan book income by 5.52% and achieved an impressive 17.47% surge in fees and commissions, demonstrating its ability to adapt to market conditions.
While acknowledging liquidity constraints, CABS chairman Washington Matsaira struck an optimistic tone about the lender’s strategic positioning.
“Liquidity in the market has generally been tight since the beginning of the year,” Matsaira noted.
“While this has brought a welcome stability in the exchange rate, the hope is that continued tightness in liquidity does not restrict credit growth and in so doing compromise economic growth.”
The lender’s operational efficiency shone through, with operating costs increasing by a marginal 0.99% year-on-year.
This disciplined cost management, combined with the strategic shift to US dollar accounting, helped mitigate financial pressures, reducing fair value losses on investment properties by ZWG478.03 million.
CABS’ ability to sustain dividend payments despite a 54.8% decline in annual surplus underscores its commitment to shareholders.
The profit reduction primarily resulted from non-recurring items, particularly a ZWG1.85 billion decline in other income, rather than core business underperformance.
Looking ahead, the lender remains focused on supporting customers and adapting to evolving market conditions.
“CABS will continue with its objective of meeting customer needs by responding adeptly to changes in market trends, while maintaining sustainable business practices,” Matsaira stated.
The institution’s performance highlights the financial sector’s capacity to navigate complex economic environments while continuing to deliver value to stakeholders and support Zimbabwe’s economic development.
