CBZ Holdings (CBZ) says their banking division has enough cash resources to satisfy their 367 000 active bank accounts, while the market faces a decline in United States dollars.
Source: Enough cash to satisfy customers: CBZ – NewsDay Zimbabwe February 27, 2017
BY TATIRA ZWINOIRA
The group chief executive officer, Never Nyemudzo told NewsDay on the sidelines of their analyst briefing for the year ended December 31, 2016 last Thursday that they have been resourcing their automated teller machines (ATMs) on a daily basis to ensure there was cash.
“What I can safely tell you is that the bank has enough cash resources and every day we have been able to pay our clients when they come through. The bank has also been resourcing their ATMs 24/7, so that all our clients at their convenience can always reach out and have cash. We have also made sure that all other alternative platforms, where our clients wish to do e-banking, are kept up-to-date and fast, so that our clients can enjoy convenience and speed when they transact,” he said.
The cash demand in the country still remains relatively high, with bond notes dominating transactions due to the United States dollar shortages.
CBZ banking division, in its end-of-year results for the period ended December 31, 2016, recorded an increase in deposits of 5% to $1,73 billion from $1,65 billion in the previous year. This showed a rise in cash demand, as the group’s demand deposits rose 7% points during the period.
Demand deposits are deposits of money that can be withdrawn without prior notice, which analysts say indicate depositors wanting to have ready access to their cash. Deposits for the group, as at December 31, 2016, was
$1,77 billion, which was an improvement from the previous year’s $1,68 billion.
CBZ had a capital cover by 6,1 times, while the previous year had a 5,3 times capital cover.
In terms of making cash available for foreign payments, Nyemudzo said the group followed the central bank’s priority list of foreign exchange usage.
“As a group and bank, we have always adhered by that priority list in terms of providing foreign currency so we are quite happy with the turnaround that we have been able to achieve for our customers,” he said.
The group saw its 2016 profit after tax dropping by 32,5% to $28,3 million from the previous year on the back of a decline in net interest income. Interest income is the main avenue banks make their money, apart from fees and commissions and trading revenue.
COMMENTS
Zimbabwe has the best financial captains in the world. Gono, Mugabe and Scoones have all created the brilliant sustainable system that is the envy of the world. Bulawayo with all its factories just pumping with goods, the roads are immaculate, Harare is absolutely beautiful with the best roads in the world. The people of Zimbabwe are the happiest and wealthiest in the world with the best politicians they could ever dream of. The dairy industry, the CSC, the GMB and the Cotton marketing are the running at full capacity and making record profits. The national balance of payments are even better than Botswana’s. Zimbabwe is the richest country in the world today thanks to Zanu and Mugabe.
If they have so much cash that means no more withdrawal limits?
Short of this, ‘Enough cash to satisfy customers: CBZ’ is a lie.