CBZ reports plausible FY15 results

Home/Investor Alert/CBZ reports plausible FY15 results

CBZ reports plausible FY15 results

CBZ released FY15 results that were largely in line with management’s forecasts. At the half year presentation management predicted total assets growth of 18% and managed to grow them by 18.20%. Deposits were expected to grow by 20% and the Group recorded slightly below that with an 18.86% growth. Total income was expected to grow by just 7.5% but the growth rate was more than doubled to 19.17%. Advances however performed below expectations after recording a 9.33% decline against predictions of a 1% growth.

Income growth in all business lines: Total Income for the period under review increased by 19.17% to $184.21 million buoyed by increases across the board. Net interest income (NII) was up 123.50% to $109.12 million after interest income increased by 7.20%, against a 6.94% decrease in interest expense. With most interest earnings assets earning steady income, the growth in interest income came from short term money market assets to $33.55 million from $15.13 million. Non-interest income was up by 7.74% to $62.58 million with its contribution to total income declining to 34% from 37.5% in FY14. Net Underwriting Income from the Group’s insurance businesses increased by 53.75% to $12.5 million.

Expenses weigh on profitability: Despite recording a 19.17% growth in total income to $184.21 million profit for the period was only up by 6.66% to $35.23 million. Profitability was weighed down by the 22.58% growth in all expenses including operating expenditure up 19.19%, impairment charges up 5.48% and taxation up 1.68%. Basic earnings per share grew to 6,52 cents up from 5,59 cents but ROE came down to 14.3% from 15.1% prior year. The Group paid a final dividend per share of 0.42 cents or $1.45 million. Total for the dividend for the year amounted to $2.91 million, a 10% growth from prior year.

CBZ Income Statement 2012 2013 2014 2015 Growth Rate %
Interest income 156.86 171.79 190.21 203.92 7.21
Interest expense 61.52 76.53 101.86 94.79 -6.94
Net Interest Income 95.33 95.26 88.35 109.12 23.51
Non-interest income 44.07 48.1 58.08 62.58 7.75
Underwiting income (net) 4.72 7.17 8.13 12.5 53.75
Total Income 144.13 150.54 154.57 184.21 19.18
Operating expenditure -83.29 -88.81 -98.66 -117.85 19.19
Operating income 60.83 61.73 55.9 66.35 18.69
Charge for impairment -4.63 -19.44 -18.03 -23.51 5.48
Transfer for Life Fund -0.64 -0.63 -0.86 -1.96 1.10
Profit before taxation 55.55 42.22 37 40.88 10.49
Taxation -10.53 -5.57 -3.97 -5.65 1.68
Profit for the year after tax 45.02 36.65 33.03 35.23 6.66
By |February 26th, 2016|Categories: Investor Alert|

About the Author:

Kudzanai Sharara
Kudzanai’s background in financial journalism with ZFN, combined with a continuing education in financial management, provide a solid grounding for his work in the research department.