By ETimes
HARARE – CABS has reinforced its role as a key economic enabler, channelling US$90 million in renewed credit facilities toward agriculture, mining, and infrastructure development in 2024 while earning national recognition for sustainable development initiatives.
The banking institution maintained its dual focus on financial inclusion and environmental stewardship deploying Afreximbank’s US$40 million facility and expanding its Trade and Development Bank line to US$50 million.
“The deployment of this funding into productive sectors resulted in employment creation, an increased tax base, and enhanced food security,” said managing director Mehluli Mpofu, highlighting the bank’s multiplier effect on Zimbabwe’s economy.
CABS’ ESG commitment was nationally honoured with December’s Inclusive SDG Development Award, reflecting its cancer awareness campaigns, chemotherapy drug donations and reforestation partnerships.
“We supported awareness campaigns and donated chemotherapy drugs to assist those in need,” noted Mpofu, underscoring healthcare investments that reached breast, childhood, prostate and testicular cancer patients.
While transitioning to USD accounting reduced fair value gains by ZWG1.29 billion, the bank grew fee income 17.48% to ZWG1.18 billion through digital channels like EezyCredit and USD account capabilities.
“We added USD account transacting capabilities… which was positively embraced,” Mpofu said.
The institution’s strategic balance sheet management allowed continued support for borrowers through what Mpofu called “a combination of local funding and offshore lines of credit,” proving resilience amid functional currency changes.
Despite a 54.8% decline in annual surplus to ZiG822.23 million primarily due to the currency transition’s impact on non-core income CABS delivered strong operational results.
The bank grew net fee and commission income by 17.48% to ZiG1.18 billion, offsetting a modest 2.83% dip in net interest income to ZiG652.28 million.
Currency conversion effects were significant, with exchange gains and property valuation losses declining by ZiG1.29 billion and ZiG478.03 million respectively year-on-year.
The institution maintained robust offshore credit lines totaling US$90 million to support lending activities while expanding digital solutions that drove transaction-based income growth.
