Harare – CBZ Holdings, Zimbabwe’s largest diversified financial services group, has recorded an increase in its pre-tax profit to $72.2 million for the year ended 31 December 2018, representing an increase of 159 percent from 27.8 million achieved in 2017.
This increase came on the back of a 9 percent growth in net interest income to $82.1 million while net non-interest income scaled up 18 percent to $108.1 million from $91.4 million in the prior year.
Total income increased by 154 percent to $75.2 million from $29.7 million in the prior year with non-interest income contributing $54.2 million up from $52.2 million in 2017.
The Group’s total assets increased by 12 percent to $2.44 billion from $2.1 billion achieved in the previous year and total equity increased by 2 percent to $315.8 million from $309.7 million in 2017.
Total deposits increased to $2.07 billion, representing an increase of 12 percent from $1.8 billion recorded in 2017.
In a statement accompanying the financial results, Group Chairman Noah Matimba highlighted the macroeconomic challenges which have impacted the industry highlighted by high inflationary pressures and foreign currency shortages and this had a toll on the insurance sector.
“The Insurance sector experienced price disparities with sharp increases in premium as insurers tried to keep up with the vulnerabilities in the economic environment,” said Matimba.
Insurance assets increased by 83 percent to $8.8 million from $4.8 as a result of continuous product review and expansion of distribution channels.
The Group proposed the declaration of a final dividend of $6.4 million, which if combined with the declared interim dividend of $2.6 million it will translate to an annual dividend of $9.0 million, representing a growth of 156 percent from prior year.
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