QUASI-GOVERNMENT financial institution, CBZ Holding, has declared an interim dividend of $1,3 million despite its profit after tax for the full year to December 2014 dipping by 10% to $33 million due to rising operating expenses and higher interest charges.
MTHANDAZO NYONI OWN CORRESPONDENT
In the group’s audited financial statement released yesterday, the chairman Richard Wilde said the board had proposed the declaration of a final gross dividend of $1,4 million, but ended up declaring $1, 3 million.
“In line with the group’s dividend growth policy and considering the need for prudent capitalisation, the board has proposed the declaration of a final gross dividend of $1 388 945,” Wilde said.
“Having declared an interim dividend of $1 259 245, this, translates to a total annual dividend of $2 648 190, a 10% growth from the prior year,” he added.
The group’s net interest income stood at $88,3 million after interest expenses rose 24% to $101 million. Non-interest income grew to $58 million from $48,1 million.
Operating expenditure increased to $98,6 million from $88, 8 million in the prior year.
Non-performing loans were higher at 7,39% from 6,1% at the beginning of the year.
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Deposits at the country’s largest financial group grew at a slower rate of 6,3% compared to 29,1% last year to $1,4 billion.
Basic earnings per share fell 11% to 5,3 cents while return on equity dropped to 15,1% from 20% in the previous year.
Total assets and liabilities stood firm at $1,7 billion and $1,4 billion respectively.
Total equity and reserves rose $205,8 million to $231,7 million.
Wilde urged the government to expedite measures to address the country’s external debt situation, high risk premium, cost of doing business, infrastructure deficiencies, structural weaknesses and the challenges in the financial services sector, among others.
“The implementation of these measures, therefore, needs to be expedited in order for the country to attain its growth targets for 2015,” Wilde said.
The company would focus on non-interest income to drive growth.
