Staff Writer
Banking unit CABS says it is committed to playing its part in the economic development of the country and, as a financier, has provided working capital and capital expenditure loans to the productive sectors of the economy.
Managing Director Mehluli Mpofu, in a statement of financials for the year ended December 31, 2024, said CABS was active in the agriculture and mining sectors as well as infrastructure development in 2024.
“In support of availing funding to propel growth in the country, CABS renewed its US$40 million facility with Afreximbank and increased its facility with the Trade and Development Bank to US$50 million. “The deployment of this funding into the productive sectors of the economy resulted in employment creation, an increase in the tax base, and enhanced food security for families,” he said.
Mpofu also said the society was also active in promoting trade and development through tailor-made trade facilities that enabled beneficiaries to seamlessly import materials and capital equipment.
Apart from investing in the economy, CABS has remained steadfast in its commitment to corporate social responsibility (CSR), embedding sustainability and community investment at the core of its operations.
Mpofu said initiatives in the reporting period spanned across key areas such as education, healthcare, environmental conservation, sports, the arts and financial literacy.
“During the year, CABS took a bold stand in the fight against cancer, focusing on breast cancer and childhood cancer, as well as prostate and testicular cancers.
“Recognising the critical importance of early detection and access to treatment, we supported awareness campaigns and donated chemotherapy drugs to assist those in need.
“Through these efforts, CABS not only provided tangible support to patients but also fostered a culture of proactive healthcare within communities,” he said.
He noted that environmental sustainability remains a key pillar of the CABS CSR strategy, and the society actively participated in tree planting initiatives to promote sustainability and combat deforestation.
“Through partnerships with key stakeholders, CABS contributed to national reforestation efforts, reinforcing its commitment to a greener future.
“This dedication to sustainability was recognised in December 2024 when CABS received the Environmental, Social, and Governance (ESG) Award for Inclusive Development of Sustainable Development Goals (SDGs) at the Zimbabwe National ESG and CSR Achievement Awards.
“Through these efforts, CABS continues to create meaningful and lasting impact across Zimbabwe,” said Mpofu.
In terms of financial performance, CABS achieved satisfactory performance on the back of increased non-funded income, bolstered by payment transactions in key economic segments as well as foreign currency translation gains.
Mpofu said the digitalisation strategy resulted in a positive customer experience by widening transaction channel options.
“We added USD account transacting capabilities to our digital channels in response to growing customer demand, which was positively embraced.
“We continued to support the borrowing requirements of our customers through a combination of local funding and offshore lines of credit,” he said.
He noted that the introduction and growth of USD digital lending channels such as EezyCredit and FlexiCredit supported CABS’ lending activities during the year.
The Society’s surplus for the year dropped by 54.8% to ZiG822.23 mln, and the drop was mainly due to a decrease in other income from ZiG2 304.04 mln to ZiG450.51 mln.
“The main contributor to the decline was the impact of the change in functional currency from local currency to USD, resulting in exchange gains and fair value losses on investment properties declining by ZWG 1 287.08m and ZWG 478.03m, respectively,” said Mpofu.
Net interest income declined by 2.83% to ZWG652.28m (2023: ZWG671.30m), while net fee and commission income increased by 17.48% to ZWG1 184.93m (2023: ZWG1 008.63m).
