CBZ Holdings expects a 2 percent decline in total income in F16 as the group becomes more prudent in light of the slowdown in the economy, CEO Never Nyemudzo told an analyst briefing presentation for the full year to December 31, 2015. However, total assets are expected to grow by 12,5 percent, while advances and deposits are forecast to increase by 5 percent and 12,5 percent respectively.
“These forecasts for 2016 are supported by a clear strategic roadmap comprising of strategic alliances, partnerships and integration including technology driven solutions and innovation”, he said.
As part of the strategic initiatives during F15, the group launched a 24/7 contact centre and facilitated cross-border retail transactions in partnership with MoneyGram as part of its global reach. “This is going to speed up the enquiry resolution and create a platform for direct marketing of the group’s products and also give our clients more options to remit funds into the country”, Mr Nyemudzo said.
“Our global reach programme is yielding results as we are providing more financial solutions and options for Zimbabweans in the diaspora.” The group also launched the CBZ Business Banking Centre to capacitate and train SMEs to enhance their business resilience and hence more centres are expected in 2016.
“To this end, we arranged a $5 million SME credit line and administered a $5 million CREATE Fund credit facility as part of agriculture value chain enhancing”, Nyemudzo said.
Innovation remains a cornerstone of the group according to Mr Nyemudzo, to support service and product offering and this has seen the launch of the CBZ Mobile App, the CBZ Mi Life Combo, a combined life assurance product as well as the VISA chip and Pin Card to enhance transactional security.
“We want to transform banking into a lifestyle through technology, giving our customers unprecedented control over their transactions”, he said. The drive on financial inclusion saw a 2 657 percent growth in the number of accounts of the Smart Cash KYC Light Account and growth in the agency banking network to 110, as well as the distribution network of insurance products.
“The group has extended its reach and made services and products more accessible by the market as part of the financial inclusion plan”, he said. The group registered after-tax profit growth of 7 percent to $35,2 million for the year to December 31, 2015 driven by interest income. For the year under review, non-funded income grew by 13,6 percent with non-interest income accounting for 34 percent of total income.
Interest income remains the most dominant after accounting for 59,2 percent of income while underwriting income contributed 6,8 percent. Looking ahead, the group also said that it is focussing on deriving 20 percent of its profits from the non-banking small business units. — Business Reporter/Wires.