THE restructuring at CBZ Holdings Limited (CBZ) which commenced last year following major acquisitions by the group is set to be concluded at the end of this month as it streamlines operations, a senior executive of the company has said.
The financial services behemoth owns subsidiaries in banking, insurance, investments, wealth management, mortgages, retail finance and property.
CBZ recently acquired 36,35 percent in First Mutual Holdings Limited and its takeover bid of ZB Financial Holdings is pending approval from the Competition and Tariff Commission.
According to the group, the restructuring exercise aims to strengthen the company’s market presence and ensure its long-term sustainability amid changing economic conditions.
“The intention was not a retrenchment of staff and I have spoken to quite a number of you who have come to me and said, ‘You know what, we have heard that 400 of your colleagues will be leaving before the end of the year; others have come up with a number of 600.’
“But for us, it was never a numbers game because it’s not a retrenchment but a restructuring,” CBZ group chief executive officer Lawrence Nyazema told The Financial Gazette recently.
Nyazema said the exercise is meant to “build a team compatible with the growth strategy.”
“So, when we say we are taking CBZ international, do we have the structure that talks to that particular strategy? If there are going to be any reductions, that will be secondary to us making sure that we have got a future-fit business that will take us forward.
“In terms of restructuring, we believe we will be able to conclude the restructuring exercise by the end of January. We would have wanted to complete it by the end of December 2024, but realistically, we are now looking at the end of January,” he said.
The restructuring exercise which began at the executive level last year led to the departure of 13 senior executives who were placed on garden leave with mutual termination of their contracts executed by December 31, 2024.
It aims to bolster CBZ’s balance sheet and expand into regional and continental markets.
Despite tight liquidity conditions, CBZ has managed to sustain lending and revenue growth for the nine months ending September 30, 2024, thanks to its solid asset base.
The bank remains committed to supporting critical sectors such as agriculture, manufacturing, and private enterprises while maintaining prudent credit risk management.
As Zimbabwe’s largest bank by assets and deposits, CBZ reported total assets of ZiG30,05 billion and deposits of ZiG18,51 billion at the end of the reporting period.
The group posted a net income of ZiG2,6 billion, mainly driven by net interest income of ZiG880,02 million and a loan portfolio of ZiG8,90 billion, showcasing its dedication to maintaining high-quality assets.
Additionally, non-interest income reached ZiG1,80 billion, reflecting the group’s strategy to diversify revenue streams and reduce reliance on interest income, thereby enhancing overall income stability.
The bank also reported a profit after tax of ZiG1,01 billion.
Nyazema emphasised that CBZ effectively utilized its strengths to achieve consistent growth over the nine-month period.
Looking forward, CBZ expects credit expansion and increased economic activity, bolstered by easing global interest rates that are anticipated to relieve borrowers.
In a positive response from the market, CBZ Holdings’ share price surged by 90,8 percent, closing the quarter at ZWG14, which translates to a market capitalization of ZiG7,3 billion, securing the fourth position on the Zimbabwe Stock Exchange (ZSE).
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