The Central Africa Building Society (CABS), which is a banking subsidiary under Old Mutual Zimbabwe, has underlined that it is dedicated to assist private sector investments that have potential to aid economic growth.
CABS Managing Director Mr Mehluli Mpofu, stated that bank will continue to act as a transitional to support its clients and aiding economic growth.
According to CABS , the bank enabled flexibility for their clients via the provision of targeted foreign currency financing as part of its commitment, and that the Society augmented its foreign currency loan book with agricultural enterprises being the major beneficiaries.
“As part of this commitment, the Bank enabled resilience for our clients through the provision of targeted foreign currency financing.
‘In the half year to June 30, 2021, the Society increased its foreign currency loan book twofold, with agricultural firms being the largest beneficiaries,” as stated by Mpofu in a statement accompanying the Bank’s officials.
The Managing Director further stated that the society has a fairly levelled portfolio of correspondent banking relations after recently locking in an additional correspondent banking relationship with EBI Groupe, Paris, and Ecobank, to help both inward and outward payments for customers.
As part of the European Investment Bank’s (EIB) prompt response programme across Africa that has the objective to strengthen economic resilience, CABS received a $15 million long term financing from the EIB.
“The facility will allow for longer loan repayment tenures which, in turn, will have a positive impact on client’s cash flow,” Mr Mpofu stated.
According to the Society, the bank performed efficiently well in terms of increase in lending and digital growth in transactions during the six months that were under review.
As mentioned by Mr Mpofu, the Society was compliant with the Reserve Bank of Zimbabwe’s (RBZ) revised Tier 1 capital requirement of the local currency equivalent to US$30 million, ahead of the December 31 2021 due date, and that the capital preservation and growth measures being implemented by the Society are bringing in positive outcomes with Tier 1 capital increasing from $2.6 billion in December 2020 to $4.2 billion in June 2021.
Net fee and commission income grew by 96% in inflation adjusted and 504% in terms of past data.
In June 2021, the Society’s loan book rose 92% to $16.38 billion from $8.51 billion as at December 31 2021, on the other hand non-performing loans remained below 0.5% throughout the period.