CBZ Group CEO - Mr. N. Nyemudzo


It gives me pleasure to report on the solid performance of CBZ Holdings Limited for the period ended 31 December 2016. The Group achieved another commendable set of financial and strategic results, inspite of the notable challenges in the operating environment. Economic growth in Zimbabwe, our predominant market, was estimated at just 0.6% in 2016, down from a revised 1.1% in 2015. Growth momentum faltered on the back of the adverse effects of a strong currency, whilst economic activity continued to transition from the formal to the informal sector. The Group’s solid set of financials, however, continued to affirm its strength and dominance within the Zimbabwean financial services industry.

Strategic Overview

The Group’s financial results were solidified by its focus on the strategic road map centred on global reach, tech-driven solutions, innovation, portfolio and earnings diversification, human capital development, liquidity management and cost containment. Through this focused approach, we managed to create value for our shareholders in particular and our stakeholders in general, as follows:

Expand local, regional and global market presence During the year 2016, we continued to increase our presence in the infrastructure development and finance market. We launched and sold out the Victoria Falls housing project, completed the Highlands Clusters and Westgate housing projects as well as completed development of the Intercare medical facility in the Baines area. In terms of our global market presence, we concluded engagements for product export into the United Kingdom. Our intention is to step up our penetration in the United Kingdom and other markets with a high number of Zimbabweans during the year 2017. We also expect to conclude assessing the feasibility of having a physical presence in the markets that we identified as having potential, during the year 2017.
Improve operational expertise and reduce costs Our cost containment initiatives began to bear fruit during the year 2016, with the Group recording a 6% reduction in operating costs. We remain confident of attaining our long term target Cost to Income Ratio of 55-60%, through ongoing initiatives under the Business Efficiency Project “BEP” and the financial strategy to Reduce, Reorient and Optimise costs.
Earnings Diversification

During the last quarter of 2016, we launched CBZ Risk Advisory Services Pvt Limited as the Group’s 7 th Strategic Business Unit. The entity is wholly owned by CBZ Holdings Limited, it complements the existing business portfolio as well as competes against other brokers in the market. CBZ Risk Advisory Services offers;

  1. Short term insurance broking and risk advisory services
  2. Group employee benefits and pensions consultancy
  3. Individual life financial planning.

We remain hopeful that this growth strategy will complement ongoing efforts to diversify the Group’s earnings mix towards the long term target split of 80/20 in respect of banking and non-banking units.

Strengthen Group Synergies and Promote Innovation The two major innovations that we launched during the year 2016, i.e. CBZ Touch and the Experience Center, together with social media platforms, recorded tremendous uptake and utilisation during the period under review. In fact, in excess of 4 200 customer registrations were recorded on CBZ Touch every month, whilst the Group ranked 6 th globally in terms of popularity on social media platforms. Our efforts to strengthen Group synergies continued to be cemented by the ongoing culture change project, which entered Phase 3 during the last quarter of 2016, and the Business Efficiency Project, though which more than 300 processes were redesigned in 2016, whist a number of process enhancements and automations have been lined up for implementation from 2017 in line with our promise to bring convenience to our customers.
Develop Valuable Strategic alliances In 2016, we both maintained the existing strategic alliances with institutions such as ZADT, CARITAS, SIDA, CARE International, among others, as well as created new alliances with likeminded institutions. In fact, we partnered with the Empowered Life Trust and Star FM to launch the inaugural CBZ Youth Entrepreneurs Program “YEP” during the last quarter of 2016. We believe that the YEP, which we will carry forward into 2017, will both expand the opportunities for youth entrepreneurs as well as create future markets for the CBZ Group.

Group Performance

The table below summarises the performance of the Group and its subsidiaries.

UnitTotal Assets US$mNet Profit Before Tax US$mShareholders’ Funds US$m
CBZ Bank 1 912.6 20.0 166.6
CBZ Life 19.3 2.6 14.9
CBZ Insurance 12.5 1.2 5.1
CBZ Asset Management 3.0 0.1 2.6
Group (Consolidated) 2 086.6 28.5 283.1

The Group and its subsidiaries continued to post commendable profits in the year 2016. This was achieved through a number of initiatives, including cost containment and promotion of high volumes of transactions across the Group. Synergy benefits were fully exploited to further financial benefits to the Group.

Corporate Social Responsibility

Corporate Social Responsibility (CSR) is an integral part of the Group’s business activities. As CBZ Holdings, our Corporate Social Responsibility activities reflect our on-going commitment to the communities within which we operate. Because of that, we take full responsibility to ensure that all our decisions and actions show transparency and commitment to ethical behaviour. We have embraced CSR approaches that are progressive and consistent with the ISO 26000:2010. In driving the Corporate Social Responsibility agenda, the Group’s CSR effort is guided by the seven key pillars of CSR namely: Organisational Governance, Human Rights, Labour Practices, Fair Operating Practices, Consumer issues, The Environment and Community Involvement & Development (also referred to as Corporate Social Investment).

Community involvement

CBZ Holdings Limited (CBZH) is committed to elevating the marginalized in the community. Our focus is to be involved in sustainable initiatives that are community driven. We strongly believe in establishing smart partnerships that are purpose driven, hence in 2016 we established a hashtag #partnershipswithpurpose. The hashtag resonated well with all our community involvement initiatives for 2016.

Our key focus areas in 2016 which aligned to our commitment to channel 1% of our profit after tax to CSR, were:

  • Education
  • Human Welfare
  • Health
  • Sporting Excellence
  • Youth Entrepreneurship


The Group recognises the need to conduct its business with integrity and in line with best corporate governance practices.

The Group continues to apply high corporate governance standards aimed at ensuring the ongoing sustainability of the business and the creation of long-term shareholder value. The CBZ Holdings Limited Board is responsible for ensuring that the Group has a clearly defined governance and compliance framework.

Our Staff

The Group continued to implement programs and initiatives to ensure that its Human Capital Strategy remained aligned to its corporate goals and objectives. A number of programmes aimed at building an internal environment that allows employees to optimize their skills and talents in providing efficient service to our clients were undertaken.

In recognising employees as key stakeholders to the organisational culture, the Group pursued a collaborative approach in putting in place the neccessary infrastructure and system that supports the CBZ Way. In so doing, it empowered its employees, and imparted a sense of belonging, creativity and positive energy. The benefits of these initiatives are already evident, for example the fusion of the innovation culture across the Group.

Various wellness programs and seminars were undertaken to promote the well-being of our staff. Harmonious industrial relations have been key to ensure continuous focus on productivity issues with Works Council and Workers Committee structures providing vibrant channels for communication, collaboration and information sharing and exchange of ideas.


My appreciation goes to our shareholders for their continued support, our valued clients for partnering us in our successes, the Group Board and Subsidiaries Boards for their provision of direction and our valued Staff for their unwavering loyalty.

N Nyemudzo
Group Chief Executive Officer
23 February 2017




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