News / National
CBZ turns focus to productive sector
18 Mar 2018 at 09:03hrs | Views
CBZ Holdings will focus on supporting the key productive sectors of the economy such as agriculture and mining as the country's biggest banking group expands its reach.
"Going forward, we will continue to support manufacturing, mining and infrastructure, including housing. We already have innovations to support business development," said group acting CEO Peter Zimunya.
He said on agriculture the bank would focus on utilising contract farming and value chain financing whereas in mining, attention would be given to chrome, lithium and gold.
For the manufacturing sector, which has been lagging behind due to obsolete machinery, Zimunya said focus would be given to export-orientated entities.
He said the financial institution would dwell on infrastructure development through housing, student accommodation and renewable energy.
Some of the running housing projects include the $15 million Marondera venture for development of 2 800 high-density housing stands and the $7 million project for development of 670 medium-density stands in Mahatshula, Bulawayo.
The new thrust comes after the group saw its profitability growing by 16,8% to $27,8 million in 2017 up from $23,8 million in the previous year.
"Our profit was attributed to transactional income. If you look at our transaction volumes they went up quite exponentially, that's what actually raised our profit. The major contribution is coming from non-interest income," Zimunya told Standardbusiness last week.
Net non-interest income went up to $91,3 million from $69 million in 2016.
Deposits grew by 4,2% from $1,77 billion in 2016 to $1,85 billion last year. The group's total assets went up from $2 billion to $2,1 billion.
A substantial amount of $37,7 billion worth of transactions was recorded during the period under review showing a 33% growth.
Non-performing loans (NPLs) grew to $112,2 million last year from $71 million in 2016.
The NPL ratio was 10,9% up from 6,6% in the prior year with the greatest chunk owed to the agriculture sector.
Major contributors to the NPLs were agriculture, commercial and distribution sectors, which had 33,7%, 27,3% and 19,1% respectively.
CBZ's number of accounts ballooned to 458 000 last year from 367 000 in 2016.
The bank's access to lines of credit plummeted from the peak of $299,4 million in 2012 to $69,2 million last year.
The number of point-of-sale machines rose to
7 650 in 2017 from 4 220 in 2016 with the number of CBZ touch mobile subscribers growing to 340 000 from 37 000 the prior year.
"Going forward, we will continue to support manufacturing, mining and infrastructure, including housing. We already have innovations to support business development," said group acting CEO Peter Zimunya.
He said on agriculture the bank would focus on utilising contract farming and value chain financing whereas in mining, attention would be given to chrome, lithium and gold.
For the manufacturing sector, which has been lagging behind due to obsolete machinery, Zimunya said focus would be given to export-orientated entities.
He said the financial institution would dwell on infrastructure development through housing, student accommodation and renewable energy.
Some of the running housing projects include the $15 million Marondera venture for development of 2 800 high-density housing stands and the $7 million project for development of 670 medium-density stands in Mahatshula, Bulawayo.
The new thrust comes after the group saw its profitability growing by 16,8% to $27,8 million in 2017 up from $23,8 million in the previous year.
"Our profit was attributed to transactional income. If you look at our transaction volumes they went up quite exponentially, that's what actually raised our profit. The major contribution is coming from non-interest income," Zimunya told Standardbusiness last week.
Net non-interest income went up to $91,3 million from $69 million in 2016.
Deposits grew by 4,2% from $1,77 billion in 2016 to $1,85 billion last year. The group's total assets went up from $2 billion to $2,1 billion.
A substantial amount of $37,7 billion worth of transactions was recorded during the period under review showing a 33% growth.
Non-performing loans (NPLs) grew to $112,2 million last year from $71 million in 2016.
The NPL ratio was 10,9% up from 6,6% in the prior year with the greatest chunk owed to the agriculture sector.
Major contributors to the NPLs were agriculture, commercial and distribution sectors, which had 33,7%, 27,3% and 19,1% respectively.
CBZ's number of accounts ballooned to 458 000 last year from 367 000 in 2016.
The bank's access to lines of credit plummeted from the peak of $299,4 million in 2012 to $69,2 million last year.
The number of point-of-sale machines rose to
7 650 in 2017 from 4 220 in 2016 with the number of CBZ touch mobile subscribers growing to 340 000 from 37 000 the prior year.
Source - the standard
