CBZ Holdings Limited earnings for the first quarter to March 31, 2022 where significantly reduced from the comparable prior year.
Figures contained in a first quarter trading update released by the Group on Monday, showed a marked reduction in earnings.
Basic earnings per share amounted to 712,01 cents down from 2 192 cents.
Return on assets during the period was down to 7,2 percent from 10,4 percent while return of equity was down to 7 percent from 32,5 percent from the comparable prior year.
According to the Group, profit after tax (year-on-year) was down 67,5 percent at $929 million down from $2,8 billion prior year comparative.
Although revenue increased to $13 billion from $8,5 billion profitability could have been affected by an increase in the cost of income as reflected by the Cost to income ratio to 39.3 percent from 31,9 percent.
The Group’s Board however believes the business is performing well.
“The Group performed well during the first quarter and will continue to strengthen its revenue generating capacity as well as focus on capital preservation amid the rising inflation,” reads part of the trading update.
“The resumption of economic and business activity on a large scale enabled the Group to increase its transactional volumes and strengthen its balance sheet.”
As a result, the Group says it is adequately capitalised, and all its regulated subsidiaries are in full compliance with the gazetted minimum capital requirements.