THE Commercial Bank of Zimbabwe (CBZ) has commended relative stability in national exchange rate, a situation that has led to a positive performances by the financial institution in the recent period.
The bank has made no secret of its bid to continue riding on the calm economic environment to leverage its success.
Presenting a trading update for the quarter ended March 31 2021, the group’s legal corporate secretary, Rumbidzayi Jakanani said the operating environment “was largely stable” during the period under review.
“The official exchange rate remained largely stable around $83 against the US dollar in the first quarter.
“Arising from the stability of the foreign currency markets – a key component in the pricing of domestic goods and services – inflationary pressures also receded over the same period,” Jakanani said.
She observed that the implemented efforts resulted in the month-on-month inflation falling marginally from an average of 3.9% in the fourth quarter to an average of 3.7% in the first quarter of 2021, whilst the year-on-year inflation rate fell notably from an average of 407 % to an average of 308 %.
During the period under review, total revenue for the group stood at $1.3 billion with profit standing at $678.1 million.
The group’s assets totalled $25 billion while total deposits stood at $19.8 billion among other top earnings.
Meanwhile, the group is responding to the needs presented by Covid-19, particularly the accelerated need for digitisation across all business units by serving customers through digital channels as the preferred way of doing business.
Despite the negative impact of the virus, the group has assessed that the pandemic will not have an inhibiting impact on its ability to continue operating as a going concern.
Jakanani said the group will continue leveraging on its strong capital and balance sheet positions, deep understanding of the local markets, and extensive investment in digital platforms to ensure sustainable growth of the business.
“The country’s economic prospects continue to improve with key fundamentals pointing towards sustained recovery. The Group will continue to increase visibility in its financial intermediation role within the economy while enhancing shareholder value in the process,” she added. newzimbabwe