· PAT narrowed to ZWL 7.7 billion from ZWL 8 billion in 2020
· Monetary loss widened to ZWL 7 billion from ZWL 1 billion in 2020
· However, total income grew to ZWL 42.5 billion
Harare- ZSE-listed largest financial services group CBZ Holdings registered a 4% decline in profit after tax to ZWL 7.7 billion the full-year-ended 31 December 2021 to ZWL 19 billion from ZWL 8 billion in 2020 according to the Group’s latest full-year financials.
The decline in PAT came as the group recorded a monetary loss of 511% to ZWL 7 billion from ZWL 1 billion recorded in 2020 as the local currency continues to succumb to high inflationary pressures.
Between December 2020 and December 2021, the ZWL has plunged by 25% while from June 2020 to date, the Zimbabwe Dollar has widened losses to 80% using the auction market rate with various lobby groups calling for the suspension of both the Zimbabwe dollar and auction market until the two are fully fed.
Some of the factors resulting in the death of the Zimbabwe dollar includes lack of confidence in both the currency and monetary officials from the public with the shortages of the greenback adding more drama through fueling the black market activities.
“In an environment of increasing change and complexity of regulation, the Board aims to achieve a balance between the governance expectations of shareholders and other stakeholders as well as the need to generate competitive financial returns,” the Group said in a statement accompanying the full-year financials.
However, the Group’s net interest income during the period more than tripled to ZWL 19 billion from ZWL 5.9 billion in 2020. Growth was largely anchored by loans and advances to customers that grew to ZWL 55 billion from ZWL 47 billion recorded in 2020 during the same period.
This paved a way for the interest income to more than double to ZWL 21.8 billion from ZWL 8 billion which translates to a 173% increase.
Meanwhile, non-interest income accelerated to ZWL 23 billion from ZWL 17 billion recorded in 2020 due to commission and fee income which soared by 172% during the period to ZWL 9 billion from ZWL 3 billion.
Resultantly, total income for the Group increased to ZWL 42.5 billion from ZWL 23.5 billion in 2020 in the comparable period.
Interest expenses grew marginally to ZWL 2.7 billion from ZWL 2.2 billion due to customer deposits which grew to ZWL 131 billion from ZWL 104 billion in 2020.
Net increase in cash and cash equivalents was stronger at ZWL 22 billion from ZWL 860 million with cash and cash equivalents at the beginning of the year firmer at ZWL 31 billion from ZWL 31 million in 2020.
This culminated in cash and cash equivalents at the end of the year spiking to ZWL 39.6 billion from ZWL 31.7 billion during the comparable period.
Operating expenditure saw a significant growth of ZWL 17 billion from ZWL 8.9 billion mainly due to staff and administration costs that surged to ZWL 10 billion and ZWL 6 billion from ZWL 5 billion and ZWL 3 billion respectively during the prior year.
“The Board has proposed the declaration of a final dividend of ZWL 1 000 000 000 or ZWL 191.57 cents per share,” added the Group.
“This declaration brings the total dividend declaration to ZWL$1 500 000 000. A separate dividend announcement with entitlement dates will be published.”
Taxation during the period was marginally lower at ZWL 2.9 billion from ZWL 3.4 billion last year.
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