HARARE – CABS recorded an increase in profit driven by income from  lending activities, the Society said in a statement accompanying the half year financial results for the six months ended June 30, 2018.

In the period under review, the Society delivered a surplus of $21 million, which is a 27 percent increase from $17 million achieved during the same period last year. Net interest income increased by 17 percent to $34 million compared to $29 million last year.

For the half year ending June 30, 2018, the Society’s capital and liquidity remained strong, the liquidity ratio was 40 percent (2017: 35 percent).

“Total regulatory capital was $166 million from 150 million prior year, after IFRS 9 initial adjustments of $20 million to reserves as well as dividends of 20 million.

“Tier 1 capital was $114 million from $103 million in in 2017, which remained above the current RBZ requirement for a minimum of $20 million Tier 1 capital for Building Societies. It was also above the RBZ requirement for a minimum $100 million Tier 1 capital, for Tier 1 banks by 2020,” the Society said.

In the six months under review, the Society delivered a surplus of $21 million from $17 million last year which is a 27 percent increase.

Net cash flows from operating activities jumped massively to $41.89 million from $5.89 million recorded in the prior year, an increase of 611 percent coming off from a low base, which can be attributed to an increase in deposits and bank commissions.

CABS said that they continue dedicated to maintain focus on delivering relevant financial services to its customers on a constant basis, thereby contributing to the development of the local economy.

“The Society also extended funding to sectors that stimulate the economy and provide jobs such as agriculture, mining and manufacturing,” the Group said.

“It increased its funding of small-holder agricultural projects including the Chibuwe and Mutema banana projects where the Society funded the drilling of boreholes and the enhancement of irrigation infrastructure.”

Operating expenses increased by 6 percent to $27.07 million from $25.50 million in 2017, whilst total assets increased by 10 percent to $1.40 billion, from $1.08 billion in March 2017.

CABS said that it is on-going branch refurbishments to improve customer experience, investing in digital networks and customer contact points as well as on-going staff training programmes so as to enhance service delivery to its customers and improve controls and efficiencies.

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