Itai Ndongwe
HARARE – The country’s largest commercial bank, CBZ Holdings, is planning to raise US$50 million through a bond issue before the end of this year. This facility will be used to meet the demands of CBZ’s client pipeline, which comprises quality projects, as well as to support the bank’s capital requirements, including initiatives in the property space.
The bank is building on the success of a 2012 bond, which raised $70 million against an initial target of US$50 million. CBZ believes that with the right international partner to back the bond, it can replicate this success.
Speaking during the analysts briefing this morning, CBZ Group CEO Lawrence Nyazema said, “We are looking at raising US$50 million. The background is that in 2012, we raised US$70 million. The intention was to raise US$50 million, but the demand was overwhelming. We went as high as $70 million. We believe we can do it again.”
He added that the funds will be used to meet the demands of the pipeline, which stands at around US$100 million. According to CBZ, approximately three-quarters of the funds raised will go towards client needs, while about a quarter will support the bank’s capital requirements. The bank is considering a bond tenure of 5 to 10 years, arguing that this would better meet the demand for capital in the market. CBZ believes that longer-term financing options are necessary to normalize the way business is done with clients and provide fair solutions.
Meanwhile, the bank now has about US$200 million in terms of lines of credit, up from a very low base of US$17 million in total lines of credit in 2022. “We have yet to increase our reliance on lines of credit, given that total deposits from customers in the market have not been growing. To support economic activity, we have found it necessary to use the quality of our balance sheet and our acceptability as the CBZ name in regional and international markets to raise lines of credit,” he added.
On the financial performance for the half-year period ended June 30, 2025, the group saw growth in core income lines and continued progress on strategic initiatives. Total income reached ZWG2.85 billion, underpinned by net interest income of ZWG973.10 million and strong non-funded income of ZWG1.88 billion. The growth in non-funded income was largely driven by the positive impact of ongoing digital transformation efforts.
Operating expenses were contained at ZWG1.59 billion, benefiting from the group’s restructuring program and cost optimization measures implemented during the period, resulting in a cost-to-income ratio of 55.6%. Expected credit loss expense was low at ZWG22.66 million, reflecting improved credit underwriting and a stronger quality loan book, resulting in a profit after tax of ZWG868.14 million for the half-year.
Total assets of the group closed at ZWG38.46 billion, while customer deposits grew to ZWG25.95 billion, supported by increased customer activity and confidence across the group’s platform. Advances stood at ZWG9.89 billion, while cash and bank balances amounted to ZWG9.59 billion.
Going forward in the second half of the year, the group plans to operationalize its regional business in countries such as South Africa, Botswana, and Eswatini. In the South African market, CBZ is set to inject US$1 million, while in the Botswana market, it will inject US$500,000.
CBZ Holdings is forecasting a positive outlook for its financial performance in 2025, with key targets including a 5% growth in revenue, a 20% increase in profitability, and a 15% rise in total assets. The group also aims to strengthen its capital position, targeting a 12% core equity ratio, while maintaining liquidity coverage above 1.25 times and a dividend cover of four times.
