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 %|
|Net Interest Income||95.33||95.26||88.35||109.12||23.51|
|Underwiting income (net)||4.72||7.17||8.13||12.5||53.75|
|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|
|Profit for the year after tax||45.02||36.65||33.03||35.23||6.66|