Staff Writer
Banking institution, CABS, a member of the Old Mutual Group recorded a surplus of Zig110,3 million in the half year to June 30, 2024 despite a challenging operating environment.
Group managing director Mehluli Mpofu in a statement of the financials said the performance demonstrated resilience in the reporting period in an environment characterised by high ZWL inflation in the first quarter of the year.
He said net interest income for the bank was 33% lower at Zig78,96 million while fee and commission income increased by 55,64%.
“The variances between the two comparative periods have been influenced by the impact of the application of IAS 29 on prior year numbers,” he said.
Mpofu noted that the bank recorded a 4,2% growth on balance sheet mainly due to credit line drawdowns amounting to US$34 million.
The managing director said on investing in innovation, the Society continues to foster agile innovation through its transformation programs to enhance customer experience and improve efficiencies in processes through process optimisation and automation.
Mpofu said during the first half of 2024, the Society introduced several projects to enhance customer experience through use of digital platforms.
Some of the initiatives include session resumption on USSD and this has aided in providing clients with a seamless process in the event of timeout caused by slow connections.
The CABS mobile application was upgraded and now offers improved performance, faster loading times, simplified navigation and access.
“As part of enhancing customer experience, our digital channels (USSD, WhatsApp Banking, Mobile App and Internet Banking) incorporated additional bill payments and EazySend on their platforms,” said Mpofu.
He said going forward, the Society will continue to explore and implement more solutions to improve both customer and employee experience.
In terms of investing in the economy, Mpofu said the Society embarked on a series of initiatives projects to add value to the development of the economy.
Some of the initiatives include when CABS secured offshore long-term funding for development into the productive sectors of the economy.
“During the first half of the year, CABS drew down facilities from Afreximbank and the Trade and Development Bank. These loans were deployed into key sectors of the sectors of the economy,” said Mpofu.
He added that being long-term, the funding is benefiting key sectors such as mining and agriculture by enhancing trade, enabling capital investment and generating employment.
“In partnership with AfDB, the Society progressed conducting research to develop a value proposition for Women-led SME’s. The outcome of this is to further capacitate the Society to effectively assist women-led businesses,” said Mpofu.
He added that as part of food security and to counter the effects of the El Nino induced drought, the Society has worked with customers in the grain supply chain to provide funding for this year’s farmer cropping seasons.
Mpofu said nearly US$10 million has been disbursed to support production of grain. Meanwhile, CABS is currently celebrating its 75th anniversary.
According to the Bank, the milestone is testament to an unwavering commitment to innovation, together with exceptional customer service, while turning a profitable financial service organization.
“Since our founding in 1949, we have grown and evolved, yet always staying true to our core values and mission.
“Over the past 75 years, we have faced challenges and celebrated successes, all the while maintaining our dedication to excellence,” reads part of the financial statement.
