CBZ profits declines by 13%

CBZ Holdings after tax profits for the half year to June 30 2013 declined by 13 percent to $16 million weighed down by a two-fold increase in the charge for impairment and interest expense. The charge for impairment doubled from $3 million to $6,6 million, diluting the increase in total income, which rose from $64 million to $69,1 million during the interim period.

The flagship, CBZ Bank Limited's after tax profits for the period also slowed down, dipping by 38,4 percent to $8 million weighed down largely by a sharp increase in interest expenses.

Profits came down significantly despite an increase in interest income from $63,2 million to $71,2 million during the interim period.

Basic earnings per share eased from US5,84c in the first half of 2012 to US5,64c in the half to June 2013. While profitability declined, on the basis of the latest set of unaudited results, investors still have kept strong faith in the group's viability.

CBZ chairman Mr Luxon Zembe said; "The group continued to show impressive results which reflect sound execution of business plans."

CBZ's share price closed the June interim period at US13,5c from US10c in January, reaching a high of US16,5c in the intervening period. The Group declared a $1,45 million dividend for the financial period under review.