ZIMBABWE’S largest mortgage lender, Central African Building Society (Cabs), recorded a surplus of $10,7 million in the first half of the year helped by an improvement in interest and non-interest income, latest financial results show.
In unaudited financial results for the first six months of the year, net income interest rose by 29% to $2,7 million from $1,95 million recorded in the same period the previous year.
The growth was aided by an increase in loans and advances which in the period went up to $296,8 million from $245 million registered in the same period in the previous year.
“Net interest contributed 56% of the building society’s total income,” Cabs said in a statement accompanying financial results.
Fee and commission income grew by 13% to $12,2 million buoyed by an increase in transaction volumes during the period.
Comparatively, operating costs increased by 33% to $17,4 million from $13,1 million achieved in the same period last year as the building society was on expansion drive during the period.
As a result, the cost to income ratio went up to 62% compared to 58% recorded in the same period last year.
Cabs said total assets grew by 18% to $117 million driven by a deposit growth of 21 % in the period under review.
In the same period the building society’s loans and advances increased to $296,8 million up from $278 million recorded in December last year.
Cabs added that 10-year mortgage loans improved to $104 million from $94 million achieved in the same period the previous year.
In that period, under review Cabs opened an additional branch and rolled out banking agents to improve accessibility.
Points of sale acquired through Zimswitch reached 73% while text-a-cash mobile remittances products exceeded revenue and usage target. Going forward the building society said it will pursue growth initiatives to enhance its role in both housing and financing.
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