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Business Reporter

CBZ Holdings, Zimbabwe’s largest financial institution, registered a 959,5 percent growth in historical net profit to $50,18 billion in the quarter to March 2023, compared to the same period last year.

The bank’s return on assets improved from 18,4 percent in the first quarter of 2022 to 23 percent in the same period this year while return on equity improved from 60 percent to 79,7 percent.

Total assets for the period under review at $1,34 trillion, registering a year-on-year growth of 495,83 percent. Bank deposits increased by 543,24 percent to $970,78 billion in the March 2023 quarter from $150,92 billion in the comparative period last year.

Analysts say the banking group can grow deposits through digital account opening, supporting loan capacity even as households draw down savings. Total advances grew by 342,30 percent 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, CBZ has extensive exposure to the agricultural industry. In a trading update for the quarter to March, the financial services 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 and contain inflation.

“In developing countries, weakening currencies are likely to increase the risk of imported inflation for net importers, but partially dollarised 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 dollarised 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.