OLD Mutual Zimbabwe’s banking subsidiary, the Central Africa Building Society (CABS), says it is committed to supporting private sector investments that can contribute to economic growth.
The country’s economy is set to grow 7.8% this year, largely supported by the agriculture and mining sectors.
Mr. Mehluli Mpofu, managing director of the bank, said CABS will continue to play an intermediary role to support its clients and foster economic growth.
“As part of this commitment, the Bank has enabled the resilience of our export clients through the provision of targeted financing in foreign currency. During the six-month period ended June 30, 2021, the Company doubled its portfolio of foreign currency loans, with agricultural businesses being the main beneficiaries, ”he said in a statement accompanying the Bank’s financial statements.
He added that the Company has a reasonably balanced portfolio of correspondent banking relationships after having recently secured an additional correspondent banking relationship with EBI Groupe, Ecobank, Paris, to support incoming and outgoing customer payments.
“The company has also expanded access to consumer loans in local currency through the Flexi, CPS and Eezy Credit facilities,” said Mpofu.
CABS has received long-term funding of $ 15 million from the European Investment Bank (EIB) as part of the EIB’s rapid response program across Africa which aims to build economic resilience to the pandemic of Covid-19.
“The facility will allow for longer loan repayment terms which, in turn, will have a positive impact on the client’s cash flow,” Mpofu said.
The Company noted that during the six month period under review, the Bank achieved strong performance through increased lending and growth in digital transactions.
The Company’s loan portfolio grew 92% to $ 16.38 billion in June 2021, from $ 8.51 billion as of December 31, 2021, while non-performing loans remained below 0.5% throughout the period.
Mr Mpofu said the digitization strategy has resulted in an increase in the volume of digital transactions through a safer and more convenient digital experience for customers.
Net fee and commission income increased 96 percent in inflation terms and 504 percent in historical terms.
Mr. Mpofu noted that the Company complied with the Reserve Bank of Zimbabwe’s revised Tier 1 capital requirement of the local currency equivalent of US $ 30 million, by the deadline of December 31, 2021. .
He said the Company’s capital preservation and growth measures are yielding positive results, with Tier 1 capital growing from $ 2.6 billion in December 2020 to $ 4.2 billion in June 2021. .
The Company’s strong capital position has enabled us to return capital to our shareholders in the form of dividends for the second year in a row, Mr. Mpofu said.