Group Chief Executive Officer’s Report 2015 CBZ Group CEO - Mr. N. Nyemudzo

Once again, I am pleased to report on the performance of CBZ Holdings Limited for the period ended 31 December 2015. The Group achieved another commendable set of financial and strategic results, inspite of the challenges within the operating environment. Economic growth in Zimbabwe, our predominant market, was downgraded from the initially projected 3.1% to just 1.5% for the year 2015, as growth momentum faltered on the back of the adverse effects of a strong currency and external factors such as low commodity prices. The Group’s solid set of financials, however, continue to affirm its strength as a leader within the Zimbabwean financial services industry.

Strategic Overview

The Group’s financial results were buttressed by its strategic focus on building a diversified business portfolio, developing innovative products, establishing an international presence through the product export strategy and utilising Group synergies.This allowed us to grow all our businesses, increase our profitability and advance key strategic initiatives. We thus improved our competitiveness and created value for our shareholders through the following strategic initiatives :

Building a diversified business portfolio During the year 2015, CBZ Group introduced the CBZ Business Banking Division as part of efforts to diversify and position the banking subsidiary to take advantage of the opportunities in the SMEs and microfinance sector. The contribution of non-banking subsidiaries to the Group’s profit after tax increased from 9% in 2014 to 15% in 2015, The target is to reach 20% by 2019.
Developing innovative products and delivery channels. Supported by the Research & Development Division , and our open innovation strategy, the Group expanded existing, and introduced new products, services and channels as part of its strategy to bring convenience to customers. These include:
  • CBZ Mobile App
  • CBZ Agency Banking
  • CBZ Shopassurance
  • 24 Hour Contact Centre
  • CBZ Mi-Life Combo
  • CBZ Smart Cash
  • CBZ Whole Life Insurance
  • CBZ US$10 million SMEs credit facility
  • ZADT US$5 million credit facility
Establishing an international presence through a “product export” strategy During the year 2015, the Group laid the foundation for its product export strategy. The first major achievement was the successful conclusion of remittances partnership with MoneyGram, which is expected to boost our transactional income strategy. We aim to expand our footprint in emerging markets while leveraging our strong postion in Zimbabwe. More initiatives will be launched in 2016 as the efforts of yesteryear begin to bear fruits.
Utilisation of Group synergies During the year 2015, the Group began initiatives aimed at positioning the Group as an organisation for the future. These include business efficiency and culture transformation programs, both of which are expected to strengthen the drive towards full exploitation of synergies. We are confident that the successful conclusion of these initiatives will also further strengthen the Group’s earnings potential.

Group Performance

The table below summarises the Group perfomance as well as that of its respective subsidiaries.

UnitTotal Assets
Net Profit
Before Tax
CBZ Bank 1 814.1 31.4 147.8
CBZ Life 17.2 4.5 12.3
CBZ Insurance 9.9 1.6 4.2
CBZ Asset Management 3.0 0.2 2.6
Group (Consolidated) 1 974.4 40.9 261.9

The Group’s strategy to balance risk and return in arriving at investment decisions saw all the subsidiaries closing the year 2015 well capitalised and compliant with the regulatory benchmarks. Whilst demonstrating the consistent shareholder support that the Group enjoys, the capitalisation levels also show the Group’s earnings generation potential as well as its ability to preserve earned capital.

In addition to concluding a number of strategic projects and initiatives, aimed at unlocking customer convenience and customer satisfaction, the Group also embarked on further initiatives to strengthen the entity as an organisation for the future. This will see the Group seamlessly adapting to the continuous changes in the operating environment, especially the growing influence and use of technology amongst most customer groups.

The Group remains hopeful that its efforts will continue to unlock value, preserve shareholder value and generate new business which will continue to bear positive results for all our stakeholders. Our underlying performance over the year shows the strength and potential of our business.

Corporate Social Responsibility

Corporate Social Responsibility (CSR) is an integral part of the Group’s business activities. CBZ Holdings, therefore, takes responsibility for the impact of its decisions and activities on society and the environment; through transparent and ethical behaviour, by embracing CSR approaches that are progressive and consistent with the ISO 26000:2010.

The Group’s CSR efforts are 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

The Group’s effective strategic Corporate Social Investment (CSI) framework continues to align community efforts and donations with core business strategy, company expertise and market needs, thus ensuring mutual benefits. It encompasses volunteerism at individual employee level, which then fosters high level of awareness and ownership amongst the employees. CBZ Holdings will support initiatives for creating shareholder value. Our strategic target is to reserve 1.0% of our profit after tax for our community driven initiatives in the areas of philanthropy, education, health, sports and the environment. A full CSI report is on page 44.


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. I would like to extend my gratitude to Richard Wilde, our Chairman and Director who has been with the Group for 17 years. Richard has led the Group in the delivery of strong financial results which is a great testament of his skills and commitment. We wish him all the best for the future.


The Group maintains a strong shareholder reward framework, supported by a consistent dividend growth policy. In line with this policy, at our Annual General Meeting in April 2016 we will propose to our shareholders a dividend payment of 0.424 cents per share, which translates to a 10% growth from the prior year’s declaration.

Our Staff

The Group believes that its success lies in a highly capable, innovative, motivated and empowered workforce that is geared to add value to its business by fully applying their valueable knowledge, talents and skills. The Group’s Human Resources strategies, polices and practices are therefore carefully designed and implemented to ensure that they align talent initiatives with sustainable long term business performance. Our staff are absolutely committed to serving our customers and I must highlight the extraordinary dedication shown in 2015 towards maintaining excellent service to our customers. The dedication and clear focus of our staff were critical to our delivery of strong perfomance despite a highly volatile and challenging environment.


Although economic growth remains constrained by the adverse effects of global economic rebalancing, the Government’s continued engagements with the international community, particularly through the International Monetary Fund (IMF) Staff Monitored Program, remains a source of hope for an economic turnaround beyond 2015. Cognisant of these prospects, we will continue with ongoing initiatives to position the organisation to take advantage of opportunities as they arise, whilst at the same time minimising on the adverse effects posed by the same environment.

In 2016, we will specifically focus on enhancing the organisation’s responsiveness to customer needs, markets and stakeholder requirements through investment in our staff, whilst cementing a culture of service excellence and innovation. Customer focus, innovation, staff focus, corporate citizenship, teamwork and integrity will remain watchwords at CBZ Holdings Limited. We are well prepared and looking forward to the exciting opportunities that lie ahead.


I would like to thank our valued clients for their continued confidence in our Company. The Group Boards’ continued invaluable leadership and support goes without mentioning. I would also like to thank all our staff members for the hard work and commitment to the common objectives evidenced by the solid set of results. To our shareholders, we appreciate their continued trust and support.

N. Nyemudzo
Group Chief Executive Officer
25 February 2016




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