FINANCIAL services group CBZ Holdings Limited has increased its dividend payout by 25% to US$10 million for its financial year ended December 31, 2024, as it rewards shareholders after a stellar year.
The dividend payout was up from the prior year’s US$8 million.
The huge dividend payout comes as the group is strengthening its balance sheet to expand its business locally and enter the regional market, despite the Competition and Tariff Commission (CTC) blocking the institution from increasing its controlling stake in First Mutual Holdings Limited.
The CTC also blocked CBZ from acquiring a significant stake in ZB Financial Holdings Limited.
“The board has proposed the declaration of a final dividend of US$10 000 000 or US$1,61 per share representing a growth of 25% from the US$8 000 000 paid for the year ended 31 December 2023,” CBZ chairperson Luxon Zembe said in a statement attached to the group’s annual results for the period ended December 31, 2024.
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“A separate dividend announcement with record and settlement dates will be published separately in due course.”
He said the projected economic growth of 6%, supported by a strong recovery in agriculture, bolstered by improved rainfall during the 2024/25 season, as well as expansion in mining and power generation was expected to enhance productivity and stimulate broader economic activity.
“The group remains well-positioned to capitalise both local and regional emerging opportunities through driving financial innovation to create sustainable long-term value for all stakeholders.”
In 2024, the agricultural sector was rattled by an El Niño-induced drought and a volatile international commodity market, affecting Zimbabwe’s top two exporting sectors.
However, the agriculture sector is expecting better rains while there is an anticipated recovery in the global commodity market, which CBZ is poised to take advantage of.
CBZ undertook a strategic review in response to an increasingly dynamic and competitive operating environment.
“This review underscored the need to realign the group’s corporate and human resources structures to drive operational efficiency, embrace technological advancement and position the business for future growth,” Zembe said.
“Consequently, a comprehensive restructuring exercise was launched in August 2024, aligned with the group’s five-year strategy. The exercise was successfully concluded on 31 January 2025, leaving the group well-placed to harness the benefits and sustain its growth trajectory.”
In line with this growth, CBZ’s loans and advances rose 80,3% to ZiG8,3 billion during the period under review from 2023.
This, plus a 70% increase in cash and cash equivalents to ZiG6,99 billion, 140% increase in money market assets to ZiG1,08 billion, 110% increase in financial securities to ZiG5,85 billion, and a 152% increase in other receivables to ZiG6,22 billion, increased total assets.
Total assets shot to ZiG34,41 billion from ZiG18,34 billion in the prior year.
“The group remains financially resilient, maintaining a strong capital position of ZiG7,91 billion, with a customer deposit base of ZiG21,59 billion and loans and advances totalling ZiG8,3 billion,” Zembe said.
“The group’s subsidiaries’ diversity plays an important role in ensuring that our clients are well catered for in their financial services needs. This also allows us to play a key financial intermediation role in the economy while delivering value to our shareholders.”
He said by the end of 2024, all subsidiaries traded above the regulated capital levels, with regular reviews meant to bolster business capacity being in place.
Profit after tax for the period was recorded at ZiG168,05 million, reflecting consistent value creation.
However, this was down from the prior year’s ZiG1,54 billion.
The drop was due to increases in operating expenditures to over ZiG3 billion, from ZiG2,23 billion in the prior year.
Non-interest income was down to ZiG2,77 billion in 2024 from ZiG4,12 billion in the prior year.
Consequently, total income was down 22% to ZiG4,11 billion last year.
