FINANCIAL services group CBZ Holdings (CBZ) says its lending portfolio increased by 3,7 percent during the half year (H1) to June 30,2024 in line with the borrowing appetite in most productive sectors of the economy.
Lawrence Nyazema
CBZ’s loan book grew to ZWG4,76 billion in H1 2024 from ZWG4,60 billion at the end of 2023.
The loan book reflected a diversified approach that mitigates concentration risk by spreading lending across various industries.
The private sector accounted for the largest share of total credit by the country’s largest bank by deposits and assets with focus on individual lending and small and medium-sized enterprises.
Private sector lending by the bank accounted for ZWG1,49 billion which is 28 percent of total loans.
The agriculture sector, vital to Zimbabwe’s economy, accounted for ZWG1,13 billion of the total loan book, underscoring CBZ’s role in financing the country’s critical food production and agricultural supply chains.
Manufacturing also remains a key area of focus, with ZWG803 million extended to businesses in this sector, supporting the country’s industrial base and helping to drive economic recovery.
“This performance was buttressed by our customer-centric approach to nurturing relationships with our customers, accessible and reliable digital platforms, enhanced disbursements, and a diverse product offering to address the financial needs of our valued customers,” CBZ Holdings Limited chief executive, Lawrence Nyazema, said in a statement accompanying the financials.
Conversely, the construction loans were also relatively low, despite ongoing infrastructure development, possibly indicating slow recovery or less risk appetite in this sector.
The sector accounted for ZWG108,9 million which is two percent of the loan book.
CBZ’s ability to increase lending in sectors such as agriculture, private, and manufacturing while maintaining prudent credit risk management demonstrates its commitment to supporting key economic drivers.
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