Almot Maqolo, Staff Writer 
FINANCIAL services group CBZ Holdings (CBZ) is set to reconfigure its business model to minimise exposure to risks associated with climate change and ensure long-term value for its investors.
This comes on the backdrop of a catastrophic farming season expected to derail economic growth forecasts.
The group has extensive exposure to the agricultural industry through lending under its Agro Yield programme.
“Climate change will continue to adversely impact the country’s agricultural and related sectors, hence the need for both the private sector and the government to step up efforts towards climate change mitigation, adaptation and relief programs.
“The group will continue to reconfigure and position its business model towards unlocking long term value for its stakeholders,” the group said in a trading update for the first quarter ended 31 March 2024.
Business reconfiguration also serves as a risk management strategy.
After reporting a consolidated operating revenue of $1,42 trillion from a total revenue of $2,38 trillion, the group demonstrated impressive financial performance during the period under review.
“This strong performance was bolstered by a sustained growth in customer numbers, deposits, transactional activity and uptake of the group’s comprehensive product range,” reads the trading update.
CBZ Holdings’ financial position is robust, with loans and advances to customers at $7,12 trillion and a customer deposit base of $16,99 trillion. This indicates a healthy liquidity position and a strong funding base.
The group’s insurance operations closed with $108,64 billion in insurance liabilities, supported by $50,09 billion in assets, demonstrating sound risk management practices.
“The group closed the period with a strong capital and asset base, coupled with a robust presence in digital channels anchoring the group’s transactional volumes and values,” CBZ Holdings stated.
“The group continues to capitalise on its strong market presence, innovation drive, and a customer-centric strategy to sustain its competitive edge.”
All of the group subsidiaries had sufficient capital as of the reporting period and complied to statutory capital requirements.
Accordingly, the group is pursuing certification with the European Organisation for Sustainable Development (EOSD), which underscores its dedication to environmental, social, and governance principles.
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