Zimbabwe’s largest financial institution, CBZ Holdings Limited, took approximately 68% of its profit after tax to $929,2 million for 2022’s first quarter, compared to 2021 owing to inflation.

In the first quarter o this year, the Zimbabwe dollar depreciated by 31,06% to end the quarter at $142,42 against the United States dollar, down from $108,66 at the start of the period, seeing the annual inflation rate rising by nearly 12 percentage points to close the quarter at 72,7% from 60,74%.

“Rising global geopolitical tensions are expected to continue exerting both upside and downside risks to the economy. In particular, mining and other export-oriented sectors are likely to benefit from firming commodity and food prices on the global markets,” CBZ said in a statement attached to its financial results for the 2022 first quarter.

CBZ said it would continue to monitor the macro-economic developments with a view to better manage emerging risks and opportunities.

Meanwhile, in the 2021 full year, CBZ Holdings experienced a near 5,5% decrease in profit after tax to $7,7 billion from a 2020 comparative of $8,15 billion due to the Zimbabwe dollar depreciating by about 33%.

CBZ saw its monetary loss widen by nearly 511% to $7,15 billion in the period under review, from a 2020 comparative of $1,17 billion. It also reduced credit losses by about 382% to $7,33 billion last year, from $1,52 billion in the prior year. Thus, the decline in profit after tax for the period under review, if it continues, could lead to a similar performance by the end of 2022.