- PAT narrowed to ZWL 929 000 from ZWL 2.9 million
- Between 31 March 2021 and 31 March 2022, the Zimbabwe dollar depreciated by 41%
- However, advances and deposits were on a growth trajectory
Harare- Largest financial services group CBZ Holdings narrowed profit after tax by 68% during the first quarter ended 31 March 2022 to ZWL 929 thousand from ZWL 2.9 million recorded in 2021 during the same period.
According to the Group, it continued to face inflationary pressures from the local currency weaknesses and global soaring oil prices due to the effects of the Russia-Ukraine War.
Zimbabwe dollar’s unending depreciation continues to devour the Group’s profit after tax, from declining by 3% in full-year 2021 to 68% during the period under review.
“The period was characterised by a surge in global inflationary pressures, which somewhat constrained demand and consumption, as central banks tightened monetary policies while economic agents reprioritized expenditures and shifted investment behaviors,” the Group said in a statement accompanying the trading update.
“In Zimbabwe, inflationary pressures were fuelled by rising global oil prices as well as currency weaknesses.”
During the end of the first quarter in 2021, the Zimbabwe dollar traded at 84.4001 against the greenback but as of 31 March 2022, the ailing local currency has widened deficits by 41% on trading at 141.4237.
However, the Group’s revenue was up at ZWL 13 million from ZWL 8.5 million during the comparable period in 2021.
Advances and deposits were also on a growth trajectory as they increased by 8% and 13% to ZWL 75 million and ZWL 150 million respectively.
“Rising global geopolitical tensions are expected to continue exerting both upside and downside risks to the economy.”
“Rising prices for oil, fertilisers, and other critical imported raw materials, will translate into higher domestic production costs, thereby adversely impacting on competitiveness and viability.”
“The Group will continue to monitor the above mentioned macroeconomic developments with a view to better manage emerging risks and opportunities,” said the Group.
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