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 |