FINANCIAL services giant CBZ Holdings Limited (CBZH) will keep a hawk’s eye on emerging risks and opportunities in the country for quicker detection and response, group chairperson Luxon Zembe has said.
The International Monetary Fund expects global growth to remain flat at 3,1% this year, with the risks to the outlook largely balanced.
Sub-Saharan Africa is expected to recover to 3,8%.
In Zimbabwe, however, the government expects growth to moderate further to 3,5%, as the adverse effects of the El Niño effect become more pronounced, particularly on the agricultural and related sectors.
Relatively strong performance is, however, still expected in the mining sector, accommodation and food services, as well as wholesale and retail trade sectors.
The downside risks to the growth projections include, among others, prolonged weak commodity prices, especially for base metals and platinum group metals, potential further disruptions to supply chains and trade flows, and currency weaknesses.
“The group will continue to monitor these developments for quicker detection of, and response to, emerging risks and opportunities,” Zembe said in a statement accompanying financial results for the year ended December 31, 2023.
In the period under review, the group leveraged on its strong investment in intellectual, manufactured and financial capital to continuously develop and offer solutions that satisfies the needs of its wide range of clients.
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These included, among others, enhancement of products and mobilisation of external lines of credit to better meet the loan requirements of industry.
Profit after tax grew by 330% to ZW$693,56 billion (US$113,61 million) compared to the prior period.
The increase was buoyed by non-net interest income, which soared to ZW$1,85 trillion (US$304,36 million) during the period, against 2022's figure of ZW$859, 44 billion (US$1,25 billion).
Net interest income was recorded at ZW$547,76 billion (US$89,72 million), up nearly 55% from the 2022 comparative.
Driving the non-net interest income were unrealised gains on foreign currency exchange, fair value adjustments on investment properties owing to the forex increases, commission and income, and net income from forex trading.
In terms of loans and advances to customers, CBZ recorded a near 145% increase to ZW$2,07 trillion (US$339,08 million) compared to the prior year.
Commercial loans to the private sector, agriculture, mining, manufacturing, and distribution, in that order, drove lending.
Increased lending and financial securities helped grow CBZH’s total assets to ZW$8,25 trillion (US$1,35 billion) at the end of last year, an increase of nearly 80% from 2022.
During the year, the group acquired an additional 32,99% stake in First Mutual Holdings Limited (FMHL).
A 1,97% stake was purchased on September 5, 2023 and 31,02% more on the following day.
The group had previously held a 3,48% stake in FMHL, which was accounted for at fair value through profit or loss.
Resultantly, the group’s interest in FMHL, increased from 3,48% to 36,47%, resulting in CBZH attaining significant influence over FMHL, which subsequently became an associate of the group.
FMHL has diverse interests in life assurance, health insurance, short-term insurance, short-term re-insurance, long-term re-insurance, wealth management, property sector, funeral services and microfinance.
The products are housed under First Mutual Life, First Mutual Health, Nicoz-Diamond Insurance, First Mutual Reinsurance, FMRE Property & Casualty (Botswana), First Mutual Wealth Management, First Mutual Properties, First Mutual Funeral Services and First Mutual Microfinance, respectively.
The group accelerated its drive to create long-term value through embedding environmental, social and governance (ESG) factors into its strategy and operations.
As a result, in addition to the ongoing certification with the European Organisation for Sustainable Development, the group obtained a nomination for accreditation with the Green Climate Fund.
The group also engaged the International Finance Corporation for advisory services on ESG, climate governance and climate risk.
Through this engagement, the group’s various board members and senior management received training on climate governance and climate risk management.
