CABS profit falls

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Old Mutual Zimbabwe’s mortgage lender Central African Building Society (CABS)  reported a 20 percent drop in profit in the six months to June from $20.7 million last year to $16.5 million, weighed down by a surge in operating costs.

Operating expenses were up 13.5 percent from $30 million to $33.6 million.

Impairments during the period under review were $2.9 million compared to a reversal of impairments of $1.6 million last year.

Net interest income in the six month period increased by 7.2 percent to $29 million.

The building society achieved non-funded income of $23.7 million compared to $21.6 million previously.

Deposits were up from $768 million last year to $855.6 million while loans and advances increased by 11.5 percent to $594 million.

CABS’s holdings of Treasury Bills increased from $88.4 million during the same period last year to $131.5 million pushing total assets up from $990 million last year to $1.08 billion. –The Source