The group’s building society and insurance businesses contributed $31 million and $9.7 million.
Total expenditure fell 6 percent as the group managed to review contracts with suppliers.
Assets increased to $2.08 billion from $1.97 billion, the majority being Treasury Bills which nearly doubled to $760.5 million from $471.9 million last year.
Analysts have warned that TBs being issued by the Zimbabwe government now carry a high risk profile as the state’s fiscal space shrinks.
With no access to foreign money, Zimbabwe’s budget is funded entirely through tax collections and has turned to the local market to fund its daily operations, with TBs as the primary instrument for raising the cash.
But Nyemudzo said the TBs were less of a risk for the bank.
“With the way local interest rates are going we are seeing in the short term a convergence where the effective interest rates on treasury bills will be lucrative than an ordinary straight loan because of reduced risks no provisions no tax,” said Nyemudzo.
“History has shown government’s capacity to settle both the capital and interest and at this point there is no doubt that we will not be paid.”
The Zimbabwe government is the second largest shareholder in CBZ Holdings, with 110 000 000 shares or 16.01 percent of the total issued share capital according CBZ’s latest report.
Earnings Per Share (EPS) were down to $4.53 from $6.52. The board declared a dividend of $3.2 million.-The Source
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