Business / Companies
Strong set of financials from CBZ Holdings
31 Aug 2011 at 09:27hrs | Views
For H1 2010, CBZ Holdings reported a strong set of financials showing attributable earnings of $13.6 million, up 115% year on year for earnings per share of 2.18 US cents a share. Total income increased 58% to $54.8 million driven by a 86% jump in funded income to make a 61% contributing to total income.
The cost to income ratio receded to 57% from 71% as operating expenditure grew 27%. The long term target cost to income ratio for the group is 50%. An interim dividend of 0.12 cents was declared implying a dividend yield of 0.8% and a cover of 18.2x. The LDR is Friday 16 September 2011.
The group launched life assurance business during the period under review. All units made positive contributions to group results. The bank recorded a profit before tax of $16.9 million, mortgage business $2.8 million, asset management $82,000 and short-term insurance $0.1 million. The bank maintained its dominant position commanding 27% of the deposits and 24% of advances.
The Group's balance sheet strengthened increasing 39% to $953.7 million as advances and deposits grew 42% and 34% respectively. Off shore lines of credit amounted to $130 million contributing 16% to total deposits. FuM grew 15% from year-end to $84.5 million.
The loan to deposit ratio was 78%. Liquidity ratio averaged 27% for the period. Provisions to total advances worsened to 1.6% from 1.1%.
The group anticipates to unlock value entrenched in its property portfolio. As the largest bank in the country, CBZ has and is likely to continue benefiting from its size. The group is concentrating on consolidating its position through quality and efficiency enhancements. The bank has identified opportunities in SME and microfinance lending and targets this to constitute approximately 3% of the total book.
Strong earnings growth is expected from CBZH. Management tweaked the total income target to $133.9 million (from $111.5 million) for FY 2011 and they expect a cost to income ratio of at most 63%. Deposits are forecast to grow to $902.8 million (old forecast $779 million) by 31 December 2011 and advances to close the year at $707.5 million ($534 million). Imara Stockbrokers believe CBZH will grow earnings faster than the ZSE over the next couple of years.
The cost to income ratio receded to 57% from 71% as operating expenditure grew 27%. The long term target cost to income ratio for the group is 50%. An interim dividend of 0.12 cents was declared implying a dividend yield of 0.8% and a cover of 18.2x. The LDR is Friday 16 September 2011.
The group launched life assurance business during the period under review. All units made positive contributions to group results. The bank recorded a profit before tax of $16.9 million, mortgage business $2.8 million, asset management $82,000 and short-term insurance $0.1 million. The bank maintained its dominant position commanding 27% of the deposits and 24% of advances.
The Group's balance sheet strengthened increasing 39% to $953.7 million as advances and deposits grew 42% and 34% respectively. Off shore lines of credit amounted to $130 million contributing 16% to total deposits. FuM grew 15% from year-end to $84.5 million.
The loan to deposit ratio was 78%. Liquidity ratio averaged 27% for the period. Provisions to total advances worsened to 1.6% from 1.1%.
The group anticipates to unlock value entrenched in its property portfolio. As the largest bank in the country, CBZ has and is likely to continue benefiting from its size. The group is concentrating on consolidating its position through quality and efficiency enhancements. The bank has identified opportunities in SME and microfinance lending and targets this to constitute approximately 3% of the total book.
Strong earnings growth is expected from CBZH. Management tweaked the total income target to $133.9 million (from $111.5 million) for FY 2011 and they expect a cost to income ratio of at most 63%. Deposits are forecast to grow to $902.8 million (old forecast $779 million) by 31 December 2011 and advances to close the year at $707.5 million ($534 million). Imara Stockbrokers believe CBZH will grow earnings faster than the ZSE over the next couple of years.
Source - Imara Stockbrokers
