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CBZ poised for growth

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ZIMBABWE Stock Exchange (ZSE) listed banking group, CBZ Bank says it is forecasting a 36,6 percent increase in total income in the next six months to US$111,5 million from US$81,6 million realised in 2010, an end-ofyear financial report released at the company’s Annual General Meeting revealed last week. According to the report, the cost-toincome ratio forecast shed 4 percent to 63 percent from 67 percent posted in 2010. Presenting the report, CBZ finance executive Never Nyemudzo said total deposits were forecast to rise to US$779 million from US$578,4 million, with advances expected to increase to US$534 million from US$444,6 million. The loan-to-deposit ratio, he said, was currently pegged around 84 percent given the funding of merchants buying crops was forecast to end the year at 68,6 percent from 76,9 percent. Nyemudzo said the group had achieved a total income of US$32,8 million in the four months to April, representing 40,2 percent of that achieved in 2010. The after-tax profit stood at US$10,1 million, which was 57,4 percent of the US$17,6 million realised in 2010. Costs had come down 35 percent with the efficiencies realised from the amalgamation of the bank and building society. Total assets amounted to US$845,4 million at the end of April, compared with US$686,9 million at December 31. Advances were up 30 percent to US$578,8 million given the need for funding crop purchases, while deposits increased 19,8 percent to US$693,1 million. CBZ last farming season also assisted farmers in the procurement of farming inputs and cash loans. Funds under managed were up 8,1 percent at US$81,7 million, while insurance assets amounted to US$2,1 million. Group chief executive Nyasha Makuvise said that the group was capitalised to the tune of US$95,7 million by April 30 compared with the Reserve Bank of Zimbabwe current requirement of US$23 million and US$85,7 million by December 31. He said it was the group’s target to generate 80 percent of income from core business activities, largely banking and insurance, while 20 percent would come from non-core projects, such as the development of Newlands City. Shareholders approved remuneration in excess of US$388 643 for the directors.

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