• Thu. Sep 21st, 2023
CBZ profit up 959.5% in Q1, to explore AI in serving customers. etimes.co.zw

By ETimes

CBZ Holdings, the biggest bank in Zimbabwe, today released its financial results for the three-month period ending 31 March 2023, with a historical net profit of $50.18 billion, an increase of 959.5% compared to the same period of the previous year.

Subsequently, the Bank’s return on assets improved from 18.4% in the first quarter of 2022 to 23.0% for the first quarter of 2023 and its return on equity grew from 60.0% to 79.7%.

Total assets for the period ended 31 March 2023 stood at $1.34 trillion, registering a year-on-year growth of 495.83%.

Bank deposits appreciated by 543.24% to $970.78 billion from $150.92 billion in the comparative period.

Analysts say banks can grow deposits through digital account opening, supporting loan capacity even as households draw down savings.

CBZ financial performance for the quarter ended 31 March 2023. etimes.co.zw
CBZ financial performance for the quarter ended 31 March 2023. [image/ CBZ Holdings]

Total advances grew by 342.30% to $334.34 billion from $75.59 billion in the same quarter last year. Due to its participation in command agriculture and other government sponsored agricultural funding programmes, the group has extensive exposure to the agricultural industry.

Also read: https://etimes.co.zw/cbz-named-to-global-finance-magazines-list-of-africas-best-banks/

In a trading update, the group said the results were commendable, demonstrating the tenacity of its corporate strategy.

“Driving such profitable performance is a diversified income mix, and a fair split of funded and non-funded income. The Group’s strong asset base continues to underline the business underwriting capacity as a leading player in the industry,” reads the trading update.

“Strategies aimed at maintaining asset quality and capital preservation will continue to be employed. As part of its market leadership, and commitment to customers, the Group enhanced technological advancements and digitalisation during the quarter for ease of transactional processes and sustainability.”

The market has been characterised by exchange rate volatility and inflationary pressures.

And banks have not been spared from the currency conundrum.

However, authorities have instituted a series of measures to stabilise the exchange rate.

“In developing countries, weakening currencies are likely to increase the risk of imported inflation for net importers, but partially dollarized economies like Zimbabwe may be partly insulated by the firming US dollar.

“On the other hand, however, the firming US dollar will affect import competitiveness for these partially dollarized economies,” the bank said.

The bank said it will keep using its investments in human, financial, intellectual and manufactured capital to manage associated risks and pursue new possibilities in the markets it serves.

“Additionally, the Group will also deliberately actively explore ways of leveraging on fast developing technologies such as artificial intelligence to better serve its customers,” CBZ Holdings said.

Total revenue for the group jumped more than fivefold to $98.68 billion from $14.32 billion in the prior period – Harare

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