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Business Reporter
CBZ Holdings has declared an interim dividend amounting to $1.8 million for the six months ended June 30, 2017, an indication that the group could generate more free cash flow going forward.

The group’s legal corporate secretary Ms Rumbidzayi Jakanani said yesterday that payment of the dividend would take place on November 17, 2017.

“Notice is hereby given that the board declared an interim dividend of $1.8m (0.25644 cents per share) for the six months ended June 30, 2017 payable in respect of all the ordinary shares of the company,” she said.

Ms Jakanani said the dividend will be paid in full to all shareholders of the group registered at the close of business.

Payment of the dividend is expected on or about November 17, 2017 and an applicable shareholders’ tax will be deducted from the gross dividends, she said.

“The shares of the company will be traded cum-dividend on the Zimbabwe Stock Exchange up to the market day of November 7, 2017 and ex-dividend as from November 8, 2017,” said Ms Jakanani.

In the half year-period ended June 30, 2017, the group’s banking division, CBZ reported an after tax profit of $12 million, which was however, flat when compared to $11.9 million achieved in the same period last year.

During the period under review, CBZ Bank net interest income was up 2.8 percent from $38.6 million in the comparable period in 2016 to $39.7 million.

CBZ Bank’s acceptances and overdrafts contributed $32.2 million and $19 million respectively while security investments brought in $21.7 million.

Non-interest income accounted for 46 percent of the group’s total income, up from 42 percent last year.

Basic Earnings Per share (EPS) grew to 4.6 cents from 4.5 cents. The group’s holding of Treasury Bills from Government during the period under review increased from $751.6 million to $814.5 million while total assets grew 3.5 percent to $2.16 billion.