CBZ Navigates Global Uncertainty with Resilient Q1...

CBZ Navigates Global Uncertainty with Resilient Q1 Performance

Nyashadzashe Ndoro- Chief Reporter

CBZ Holdings Limited, Zimbabwe's largest listed bank, has announced a robust financial performance for the first quarter ended March 31, 2025, demonstrating resilience in a global economic environment marked by significant uncertainty.

According to a trading update released by the diversified financial services group, profit after tax reached ZWG$537.53 million, generated from a total income of ZWG$1.41 billion.

The Group highlighted that its strong financial position and substantial market presence in deposit mobilisation and transactional volumes underpinned this performance. Funded income contributed ZWG$486.24 million, while non-funded income delivered a particularly strong ZWG$938.03 million, attributed to ongoing investments in digital service delivery channels.

Despite negative global economic sentiments stemming from geopolitical tensions, the termination of US foreign aid, and escalating trade wars, CBZ Holdings noted that Zimbabwe's operating environment experienced relative stability in goods and foreign exchange markets, supported by a disciplined monetary policy.

The local currency marginally depreciated by 3.75% against the US dollar during the quarter, closing at ZWG$26.77.

The Reserve Bank of Zimbabwe's monetary policy stance remained tight, featuring increased deposit interest rates, a targeted finance facility for the productive sector, higher export surrender requirements (30%), a USD-denominated deposit facility for exporters, and the removal of margins on foreign currency trading.

Investor participation on the Zimbabwe Stock Exchange remained subdued due to liquidity constraints, resulting in a 5.7% quarterly decline in the All Share Index, which closed at 205.25. CBZ Holdings' share price also saw a decline of 18.0% to ZWG$7.00, leading to a market capitalization of ZWG$3.7 billion.

In contrast, the US dollar-denominated Victoria Falls Stock Exchange experienced a 6.0% gain in its All-Share Index, closing at 110.32, driven by increased demand for foreign currency-denominated stocks. Consequently, the VFEX market capitalization firmed by 0.9% to US$1.29 billion during the same period.

CBZ Holdings reported an asset base of ZWG$38.75 billion at the end of the quarter, supported by a deposit base of ZWG$26.79 billion. The Group emphasized that this solid deposit base bolsters its liquidity and capacity for responsible credit extension.

The Board of CBZ Holdings affirmed its confidence in the Group's ability to continue as a going concern.

"The Board has reviewed the Group's financial position and is satisfied that CBZ Holdings and its subsidiaries will continue to operate as a going concern. All business units remain adequately capitalised to support both their operational activities and strategic growth mandates," the company stated.

Looking ahead, CBZ Holdings anticipates continued global economic uncertainty and persistent monetary policy tightening locally.

However, the Group believes it is well-positioned to pursue growth opportunities through innovation, cost discipline, and efficient capital allocation, with strategic investments in key areas remaining central to its value-creation strategy.