CBZ : HY Results & Audit Review

September 22, 2023 at 03:20 am EDT

REVIEWED INTERIM CONSOLIDATED

FINANCIAL RESULTS

For the half year ended 30 June 2023

REVIEWED INTERIM CONSOLIDATED

FINANCIAL RESULTS

For the half year ended 30 June 2023

KEY FINANCIAL HIGHLIGHTS (ZWL$m) INFLATION ADJUSTED

Profit after taxation		Total comprehensive income				Total equity
543,876.5	582%	753,708.3	595%			1,300,455.2	147%


Total advances		Total deposits				Total assets
1,745,853.8	217%	4,527,477.3	113%	6,517,438.8	118%

GROUP CHAIRMAN'S STATEMENT

Introduction

I am pleased to present the financial performance of CBZ Holdings Limited and its subsidiaries for the half year ended 30 June 2023.

Operating Environment

The period under review was characterised by elevated inflationary pressures on the global, regional and domestic fronts, as the effects of rising food prices and pent up demand from the transition from lockdown became more pronounced. Major Central Banks maintained tight monetary and fiscal policy stances.

In Zimbabwe, the Reserve Bank continued to align its monetary policy stance to developments in the goods, equities and money markets. The country experienced significant exchange rate depreciation between April and June 2023 largely driven by money supply factors, which exerted pass-through inflation to the economy. However, the bold policy intervention measures instituted by the Government and the Reserve Bank of Zimbabwe, for tackling the transitory price and exchange rate volatility, have gone a long way in arresting the instabilities and bringing the much-needed normalcy in the price and exchange rate dynamics in domestic markets.

On the local bourse performance, save for the top 10 Index, all major ZSE benchmarks rounded the first half of the year on a positive note. The Zimbabwe Stock Exchange closed the period with a market capitalization of ZWL$13 trillion, a gain of 779%. On the US dollar denominated bourse, VFEX, the All Share Index closed at 76.17 and a market cap of US$ 1.29 billion.

These developments, together with advancements in the technology spaces shaped the Group's corporate and business strategies, initiatives and tactics, as it sought to continuously meet and exceed the expectations of its stakeholders.

Corporate Social Responsibility

CBZ Holdings takes a holistic approach towards Corporate Social Responsibility (CSR) in its business activities to ensure a positive impact in the communities it does business in. During the first half of 2023, CBZ Holdings launched the CBZ Foundation (CBZF) in March 2023 which seeks to extend contribution to national development in the areas of health, education and vulnerable groups.

The Group continued promoting sporting excellence in Zimbabwe by hosting the CBZ Annual Marathon. Over 2000 runners from all over the nation competed in the various races.

Corporate Governance

As Chairman of the Board of Directors of CBZ Holdings Limited, I have strived to ensure that the Group has both, sound corporate governance and effective, active Boards across the entire breadth of subsidiaries. My responsibilities have paid special emphasis on leading the Board effectively, overseeing the Group's corporate governance model, communicating with shareholders and ensuring that good information flows freely between the Executive and Non-Executive Directors promptly. The Board believes that corporate governance is more than just a set of guidelines; rather it is a framework which underpins the core values for running the business in which we all believe, including a commitment to sustainable practices coupled with open and transparent communications with stakeholders. We believe that good corporate governance improves long-term success, productivity and performance. There have been no changes in directorship throughout the Group, which is indicative of the stability, commitment and dedication that is a constant theme within the Group.

Share Price Performance

On the capital markets, the CBZH share price increased by 1,465.8% from ZW$135 at the beginning of the period to close at ZW$2,113.85. The ZSE benchmark index registered a growth of 758.6%. CBZH ended the period with a market capitalisation of ZW$1.1 trillion. The graph below shows the movements in the CBZH share price and the benchmark industrial index from December 2022 to June 2023.

(cents)PriceShareCBZH		21-Dec-31	22-Jan-31	22-Feb-28	22-Mar-31	22-Apr-30	22-May-31	22-Jun-30	22-Jul-31	22-Aug-31	22-Sep-30	22-Oct-31	22-Nov-30	22-Dec-31	23-Jan-31	23-Feb-28	23-Mar-31	23-Apr-30	23-May-31	23-Jun-30	188,000	IndexShareAllZSE
3,000	148,000


	2,000																				108,000

																					68,000
	1,000																				28,000

	0																				-12,000
								CBZH Share Price			ZSE All Share Index
Overview of the Group's performance
The table below summarises the Group's financial performance for the half year ended 30 June 2023.
							REVIEWED					UNAUDITED				AUDITED	UNAUDITED
						INFLATION												INFLATION
						ADJUSTED		RESTATED		HISTORICAL			RESTATED		ADJUSTED	HISTORICAL
					30 JUNE 2023	30 JUNE 2022		30 JUNE 2023		30 JUNE 2022		31 DEC 2022	31 DEC 2022
						ZWL$m		ZWL$ m			ZWL$ m			ZWL$m		ZWL$ m		ZWL$ m
Key Financial Highlights
Profit after taxation				543 876.5		79 780.7		779 422.3			37 244.4		103 215.8	80 960.6
Total comprehensive income			753 708.3		108 397.8		1 054 494.6			52 086.4		134 456.4	111 222.0
Total assets					6 517 438.8		2 267 427.3		6 391 499.8			441 899.1		2 983 872.3	923 273.1
Total equity				1 300 455.2		503 492 .9		1 212 638.2			83 436.2		526 137.4	143 364.9
Total deposits					4 527 477.3		1 416 015.7		4 527 477.3			288 608.3		2 125 397.0	680 399.5
Total advances					1 745 853.8		897 117.7		1 745 853.8			182 893.6		550 463.5	176 218.9
Other statistics
Basic earnings per share			208 368.29		30 583.52		298 604.18			14 269.14		19 772.54	15 509.21
(cents)

Non-interest income to total				89.1			79.9			94.4				86.9			70.4		77.6
income (%)

Cost to income ratio (%)				17.5			27.3			9.0				20.5			34.5		27.1
Return on assets (%)					30.9			13.6			51.5				32.0			6.8		17.9
Return on equity (%)					91.8			35.2			146.0			100.3			22.7		93.5
Growth in deposits (YTD %)				113.0			0.4			565.4				119.7			50.7		417.9
Growth in advances (YTD %)				217.2			49.5			890.7				227.2			(8.3)		215.2
Growth in PAT (YOY %)				581.7			146.8			1 992.7				887.2			24.7		400.9

Dividend

The Board has proposed the declaration of an interim dividend of USD 3 000 000 or 0.525 cents per share. A separate dividend announcement with record and settlement dates will be published.

Outlook

Going forward, core economic sectors are expected to remain strong, providing significant upside potential for the economy. Activity is expected to remain elevated in the mining sector, particularly precious and battery metals subsectors, thanks to high global demand. The local construction sector will continue to witness visible growth driven by residential construction as well as public sector investment projects.

Increased focus on climate change adaptation and mitigation coupled with intermittent power shortages is also expected to stimulate further investment in green energy and the related technologies. The Group has already made inroads into the renewable energy sector, and it will continue to mobilise resources to meet and support its client's growing demands in this space.

Meanwhile, it is expected that the Government will continue with the arrears clearance and reengagement program as this is critical in unlocking broad based economic growth. On the global level, the decision by some Central Banks to halt interest rate hikes provides some prospects for the gradual reduction in the cost of global capital. Therefore, the Group will continue to monitor developments around global interest rates with a view to tap into favourably priced lines of credit for the benefit of its various customers.

Appreciation

Our valued clients remain the core of our success and we highly appreciate their continued partnerships with us. I would like to thank fellow Directors of the Board, the Boards of Subsidiary Companies, Management and Staff for their commitment to the CBZ brand and their desire to participate in the growth of the country's economy.

…………………….............................................

Marc Holtzman

Group Chairman

15 September 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors are responsible for the oversight of the Group's interim condensed consolidated financial statements preparation to ensure that its financial statements comply with the Companies and Other Business Entities (Chapter 24:31) and International Financial Reporting Standards ("IFRS"). They have general responsibility, through various Board Committees, Executive management, compliance and internal audit function for risk management and ensuring that internal controls are in place to identify and mitigate risks of the Group to prevent and detect fraud and other irregularities.

The interim condensed consolidated financial statements are, by Law and International Financial Reporting Standards (IFRS), required to present fairly, the financial position of the Group and its performance for that period. In preparation of the Group interim condensed consolidated financial statements, the Directors are required to:

state whether they have been prepared in accordance with IAS 34 [Interim financial reporting]; and
prepared on the going concern basis, unless it is inappropriate to presume that the Group will continue in business;
select suitable accounting policies and then apply them consistently; and
make judgements and estimates that are reasonable and prudent;

Compliance with Local Legislation

The interim condensed consolidated financial statements have been prepared in the manner required by the Companies and Other Business Entities Act (Chapter 24:31), Banking Act (Chapter 24:20), Insurance Act (Chapter 24:07), Securities and Exchange Act (Chapter 24:25); Microfinance Act (Chapter 24:29), Asset Management Act (Chapter 24:06) and Zimbabwe Stock Exchange (ZSE) Listing Rules of 2019. In addition, the Group is generally compliant with the RBZ Banking Regulations, Statutory Instrument 205 of 2000.

Compliance with IFRS

These interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standard [IAS] 34 Interim financial reporting as promulgated by the International Accounting Standards Board (IASB).

The interim condensed consolidated financial statements have also been prepared to take account of the effects of inflation in accordance with IAS 29, Financial Reporting in Hyperinflationary Economies. The historical cost amounts are shown herein as supplementary information. This information does not comply with the International Financial Reporting Standards in that it has not taken into account the requirements of International Accounting Standard 29 (Financial Reporting in Hyperinflationary Economies). The Group's External auditors have therefore not expressed a review opinion on this historic financial information.

Going concern

The Directors have assessed the ability of the Group to continue operating as a going concern and believe that the preparation of these financial statements on a going concern basis is still appropriate. The Directors have engaged themselves to continuously assess the ability of the Group to continue to operate as a going concern and to determine the continued appropriateness of the going concern assumption that has been applied in the preparation of these interim condensed consolidated financial statements.

Responsibility

The Directors are responsible for preparing the interim condensed consolidated financial statements. These financial statements were prepared by CBZ Holdings Limited's Group Finance Department, under the direction and supervision of the Group Chief Finance Officer, Mr Tawanda L. Gumbo, PAAB Number 0223.

By order of the Board.

………………	………………………….............................…
T. GUMBO	DR . B. MUDAVANHU
GROUP CFO	GROUP CEO
15 September 2023	15 September 2023

AUDITOR'S REVIEW STATEMENT

CBZ Holdings Limited

The Inflation Adjusted Interim Condensed Consolidated Financial Statements for the half year ended 30 June 2023 have been reviewed by KPMG and a qualified review conclusion issued thereon in relation to the initial application of IFRS 17, Insurance Contracts.

The review conclusion has been made available to management and those charged with governance of CBZ Holdings Limited. The engagement partner responsible for this review is Themba Mudidi (PAAB Practicing Certificate Number 0437). The auditors' review conclusion on the Inflation Adjusted Interim Condensed Consolidated Financial Statements is available for inspection at the Company's registered office.

The interim condensed inflation adjusted financial results for CBZ Life Limited ("CBZ Life"), CBZ Insurance (Private) Limited ("CBZ Life") and CBZ Asset Management (Private) Limited t/a Datvest ("Datvest"), for the half year ended 30 June 2023 have not been audited or reviewed by Messrs KPMG Chartered Accountants (Zimbabwe).

CBZ Bank Limited

The Interim Inflation Adjusted Financial Results of CBZ Bank Limited for the half year financial period ended 30 June 2023, have been reviewed by Messrs KPMG Chartered Accountants (Zimbabwe). An unmodified review conclusion has been expressed thereon.

The auditor's review conclusion is available for inspection at the Company's registered office. The engagement partner responsible for this review is Themba Mudidi (PAAB Practicing Certificate Number 0437).

1	DIRECTORS: Mr. M. L. Holtzman (Chairman) \| Mrs. R. L Gaskin Gain \| Mr. E. U Mashingaidze \| Mr.L. C. Gerken \|
Mr. E. E. Galante \| Dr. B. Mudavanhu * \| Mr. T.L. Gumbo * \| *EXECUTIVE

REVIEWED INTERIM CONSOLIDATED FINANCIAL RESULTS

For the half year ended 30 June 2023

CONSOLIDATED STATEMENT OF

PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the half year ended 30 June 2023

			REVIEWED

			INFLATION ADJUSTED	RESTATED
			30 JUNE 2023	30 JUNE 2022
			ZWL$ 000	ZWL$ 000

	NOTES
Interest income	2		196 496 822		109 823 021
Interest expense	2		(42 316 907)		(9 238 937)
Net interest income			154 179 915		100 584 084
Non-interest income	3		1 142 542 343		358 516 730
Net insurance service result	4.1		(13 723 910)		(10 084 336)
Net insurance finance cost	4.2		(483 040)		(356 070)
Total income			1 282 515 308		448 660 408
Operating expenditure	5		(225 077 503)		(122 263 053)
Operating income			1 057 437 805		326 397 355
Expected credit loss expense on financial assets	13		(165 383 557)		(112 121 138)
Expected credit loss expense on insurance assets	(344 652)		(399 441)
Monetary loss			(158 126 065)		(73 059 547)
Profit before taxation			733 583 531		140 817 229
Taxation	6.1		(189 706 988)		(61 036 555)
Profit after tax for the period			543 876 543		79 780 674
Other comprehensive income
Items that will not be reclassified to profit or loss
Gains on property revaluations			197 153 548		33 428 963
Gains on equity instruments at FVOCI*			59 438 884		314 522
Deferred income tax relating to components of
other comprehensive income	6.3		(45 763 696)		(5 415 138)
			210 828 736		28 328 347
Items that are or may be reclassified subsequently to profit	or loss
Exchange gains/ (losses) on translation
of foreign subsidiaries	28.7		(996 940)		288 767
Other comprehensive income for the period	net of tax	209 831 796		28 617 114
Total comprehensive income for the period			753 708 339		108 397 788
Profit for the period attributable to:
Equity holders of parent			543 857 916		79 825 441
Non-controlling interests	28.5		18 627		(44 767)
			543 876 543		79 780 674
Total comprehensive income for the period	attributable to:
Equity holders of parent			753 602 290		108 424 032
Non-controlling interests	28.5		106 049		(26 244)
Total comprehensive income for the period			753 708 339		108 397 788
Earnings per share (cents)
Basic	7.1		208 368.29		30 583.52
Basic Diluted	7.1		208 368.29		30 583.52
Headline	7.1		155 601.65		21 593.38

* Fair value through other comprehensive income

UNAUDITED

HISTORICAL	RESTATED
30 JUNE 2023	30 JUNE 2022
ZWL$ 000	ZWL$ 000

94 205 641	14 398 892
(17 981 602)	(1 107 124)
76 224 039	13 291 768
1 149 243 948	78 895 621
(8 431 887)	(1 307 064)
(245 170)	(44 809)
1 216 790 930	90 835 516
(108 415 938)	(18 652 118)
1 108 374 992	72 183 398
(165 383 557)	(22 857 913)
(344 652)	(81 433)
-	-
942 646 783	49 244 052
(163 224 489)	(11 999 631)
779 422 294	37 244 421
259 632 899	14 472 595
86 031 666	2 703 980
(69 595 283)	(2 393 512)
276 069 282	14 783 063
(996 940)	58 870
275 072 342	14 841 933
1 054 494 636	52 086 354
779 380 803	37 243 608
41 491	813
779 422 294	37 244 421
1 054 336 681	52 077 760
157 955	8 594
1 054 494 636	52 086 354
298 604.18	14 269.14
298 604.18	14 269.14
228 233.45	10 426.64

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the half year ended 30 June 2023

REVIEWED INFLATION ADJUSTED

					Share based		Fair			Total equity	Non-
		Share	Share		Payment	Revaluation	value		Retained	attributable	controlling
		capital	premium	SAAR**	reserve	reserve	reserve	*FCTR	earnings	to parent	interests	Total
	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000

RESTATED
30 JUNE 2022
Opening balance at
1 January 2022	2 889 384	17 656 889	-	6 120 243	54 231 157	17 242 553	2 252 334	283 926 354	384 318 914	46 959	384 365 873
Impact of initial
application of IFRS 17***	-	-	-	-	-	-	-	(2 508 899)	(2 508 899)	9 563	(2 499 336)
Restated opening balance
at 1 January 2022	2 889 384	17 656 889	-	6 120 243	54 231 157	17 242 553	2 252 334	281 417 455	381 810 015	56 522	381 866 537
Profit for the period		-	-	-	-	-	-	-	79 825 441	79 825 441	(44 767)	79 780 674
Other comprehensive
income for the period		-	-	-	-	27 996 129	313 695	288 767	-	28 598 591	18 523	28 617 114
Issue of shares
awaiting allotment		-	-	4 905 134	-	-	-	-	-	4 905 134	-	4 905 134
Closing balance at
30 June 2022	2 889 384	17 656 889	4 905 134	6 120 243	82 227 286	17 556 248	2 541 101	361 242 896	495 139 181	30 278	495 169 459
30 JUNE 2023
Opening balance at
1 January 2023	2 889 384	17 656 889	11 627 113	6 120 243	71 750 865	30 157 851	3 048 872	382 864 018	526 115 235	22 148	526 137 383
Profit for the period		-	-	-	-	-	-	-	543 857 916	543 857 916	18 627	543 876 543
Other comprehensive
income for the period		-	-	-	-	157 055 684	53 685 630	(996 940)	-	209 744 374	87 422	209 831 796
Dividend paid		-	-	-	-	-	-	-	-	-	-	-
Issue of shares
awaiting allotment		-	-	20 609 455	-	-	-	-	-	20 609 455	-	20 609 455
Equity-settledshare-based payment	-	-	-	-	-	-	-	-	-	-
Closing balance at
30 June 2023	2 889 384	17 656 889	32 236 568	6 120 243	228 806 549	83 843 481	2 051 932	926 721 934	1 300 326 980	128 197	1 300 455 177


					UNAUDITED HISTORICAL

					Share based		Fair			Total equity	Non-
		Share	Share		Payment	Revaluation	value		Retained	attributable	controlling
		capital	premium	SAAR**	reserve	reserve	reserve	*FCTR	earnings	to parent	interests	Total
	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000

30 JUNE 2022
Opening balance
at 1 January 2022	5 220	33 876	-	569 951	5 790 710	1 964 010	77 029	21 264 515	29 705 311	4 957	29 710 268
Impact of initial
application of IFRS 17***	-	-	-	-	-	-	-	(241 875)	(241 875)	746	(241 129)
Restated opening balance
at 1 January 2022	5 220	33 876	-	569 951	5 790 710	1 964 010	77 029	21 022 640	29 463 436	5 703	29 469 139
Profit for the period	-	-	-	-	-	-	-	37 243 608	37 243 608	813	37 244 421
Other comprehensive
income for the period	-	-	-	-	12 207 700	2 567 583	58 870	-	14 834 153	7 780	14 841 933
Issue of shares
awaiting allotment	-	-	1 000 000	-	-	-	-	-	1 000 000	-	1 000 000
Closing balance at
30 June 2022	5 220	33 876	1 000 000	569 951	17 998 410	4 531 593	135 899	58 266 248	82 541 197	14 296	82 555 493
30 JUNE 2023
Opening balance
at 1 January 2023	5 220	33 876	3 500 000	569 951	26 517 008	11 232 948	332 024	101 165 564	143 356 591	8 333	143 364 924
Profit for the period	-	-	-	-	-	-	-	779 380 803	779 380 803	41 491	779 422 294
Other comprehensive
	income for the period	-	-	-	-	197 501 230	78 451 588	(996 940)	-	274 955 878	116 464	275 072 342
	Issue of shares
	awaiting allotment	-	-	14 778 618	-	-	-	-	-	14 778 618	-	14 778 618
Closing balance at
30 June 2023	5 220	33 876	18 278 618	569 951	224 018 238	89 684 536	(664 916)	880 546 367	1 212 471 890	166 288	1 212 638 178

	* Foreign currency translation reserve	** Shares awaiting allotment reserve (Refer to note 28.9)	*** Refer to Note 28.4.1

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2023

CONSOLIDATED STATEMENT OF CASH FLOWS

For the half year ended 30 June 2023

REVIEWED

UNAUDITED

			REVIEWED	AUDITED

			INFLATION ADJUSTED	RESTATED
			30 JUNE 2023	31 DEC 2022
			ZWL$ 000	ZWL$ 000

	NOTES
Cash and cash equivalents	9		1 781 504 208	821 788 207
Money market assets	10		441 470 102	110 762 340
Financial securities	11		57 329 132	155 042 856
Loans and advances to customers	12		1 745 853 793	550 463 498
Insurance contract assets	24		6 047 398	2 593 946
Reinsurance contract assets	24		7 933 702	3 956 845
Equity investments	16		136 221 202	54 150 233
Land inventory	15		62 667 234	64 978 242
Other assets	14		1 481 271 071	885 678 620
Current tax receivable			11 237 165	521 814
Intangible assets	21		2 184 645	2 893 044
Property and equipment	19		353 073 176	142 235 671
Investment properties	20		271 351 556	89 314 133
Deferred tax asset	22		159 294 376	99 492 805
TOTAL ASSETS			6 517 438 760	2 983 872 254
LIABILITIES
Deposits	23		4 527 477 297	2 125 397 023
Insurance contract liabilities	24		15 953 541	8 695 704
Reinsurance contract liabilities	24		3 875 707	1 733 465
Other liabilities	25		257 779 843	179 454 031
Current tax payable			4 286 714	4 327 073
Investment contract liabilities	25		1 770 773	1 153 431
Lease liabilities	19b	2 316 903	817 660
Deferred tax liability	22.1		403 522 805	136 156 484
			5 216 983 583	2 457 734 871
EQUITY
Share capital	28.1		2 889 384	2 889 384
Share premium	28.2		17 656 889	17 656 889
Revaluation reserve	28.3		228 806 549	71 750 865
Shares allotment reserve	28.9		32 236 568	11 627 113
Share based payment reserve	28.8		6 120 243	6 120 243
Fair value reserve	28.6		83 843 481	30 157 851
Retained earnings	28.4		926 721 934	382 864 018
Foreign currency translation reserve	28.7		2 051 932	3 048 872
Equity attributable to equity holders of the parent			1 300 326 980	526 115 235
Non-controlling interest	28.6		128 197	22 148
TOTAL EQUITY			1 300 455 177	526 137 383
TOTAL LIABILITIES AND EQUITY			6 517 438 760	2 983 872 254

UNAUDITED

HISTORICAL	RESTATED
30 JUNE 2023	31 DEC 2022
ZWL$ 000	ZWL$ 000

1 781 504 208	263 077 584
441 470 102	35 458 149
57 329 132	49 633 591
1 745 853 793	176 218 892
6 047 398	830 395
7 933 702	1 266 697
136 221 202	17 335 017
2 034 875	1 657 513
1 464 479 273	278 780 809
11 237 165	167 047
557 802	257 276
306 185 192	37 593 673
271 351 556	28 591 973
159 294 376	32 404 493
6 391 499 776	923 273 109
4 527 477 297	680 399 535
15 953 541	2 783 740
3 875 707	554 931
254 345 821	57 118 257
4 286 714	1 385 218
1 770 773	369 246
2 316 903	261 756
368 834 842	37 035 502
5 178 861 598	779 908 185
5 220	5 220
33 876	33 876
224 018 238	26 517 008
18 278 618	3 500 000
569 951	569 951
89 684 536	11 232 948
880 546 367	101 165 564
(664 916)	332 024
1 212 471 890	143 356 591
166 288	8 333
1 212 638 178	143 364 924
6 391 499 776	923 273 109

	INFLATION ADJUSTED	RESTATED
	30 JUNE 2023	30 JUNE 2022
	ZWL$ 000	ZWL$ 000
CASH FLOWS FROM OPERATING ACTIVITIES

Profit before taxation	733 583 531	140 817 229
Non-cash items:
Monetary loss	158 126 065	73 059 547
Depreciation	8 570 416	3 785 420
Amortisation of intangible assets	1 340 109	407 322
Write off & Impairment of property and equipment	1 583 989	13 378
Write off of intangible assets	-	36 686
Fair value adjustments on investment properties	(183 687 411)	(33 638 789)
Write off of right of use asset and lease liabilty	(35 585)	-
Fair value adjustments on financial instruments	(21 847 137)	10 505 125
Expected credit loss expense	165 383 557	112 121 138
Expected credit loss on insurance assets	344 652	399 441
Unrealised gain on foreign currency position	(786 319 968)	(236 478 003)
Profit/ (Loss) on disposal of investment properties	(710 867)	2 426 719
Changes in insurance and reinsurance contract assets/liabilities	989 649	739 442
Accrued interest on loans	(14 307 936)	(39 351 843)
Accrued interest on deposits	4 780 773	5 674 234
Profit on sale of property and equipment	(100 658)	(8 290)
Interest on lease liability	60 177	18 450
Operating cash flows before changes
in operating assets and liabilities	67 753 356	40 527 206
Changes in operating assets and liabilities
Deposits	3 690 741 861	100 433 774
Loans and advances to customers	(3 921 335 730)	(686 807 138)
Life assurance investment contract liabilities	617 343	(18 438 270)
Insurance contract assets	(6 408 302)	(22 473 312)
Reinsurance contract assets	1 963 634	550 544
Insurance contract liabilities	13 620 119	49 972 140
Reinsurance contract liabilities	44 944	(26 757)
Money market assets	(116 558 539)	150 606 355
Financial securities	(19 648 542)	561 693
Land inventory	2 311 008	2 068 027
Other assets	2 993 151 254	332 428 344
Other liabilities	(628 813 985)	65 667 216
	2 009 685 065	(25 457 384)
TAXATION
Corporate tax paid	(77 693 028)	(13 950 276)
Net cash inflow from operating activities	1 999 745 393	1 119 546
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds on disposal of investment property	2 983 852	3 231 537
Investment in equities during the period	(3 101 238)	(10 121 529)
Equity investments disposed during the period	2 316 290	1 807 925
Purchase of investment property	(622 997)	(48 625)
Proceeds on disposal of property and equipment	127 636	12 086
Purchase of property and equipment	(22 988 303)	(6 385 026)

HISTORICAL	RESTATED
30 JUNE 2023	30 JUNE 2022
ZWL$ 000	ZWL$ 000

942 646 783	49 244 052
-	-
2 175 620	372 091
79 159	42 966
506 783	415
-	3 599
(243 188 934)	(13 558 805)
(13 530)	-
(32 144 506)	(1 745 397)
165 383 557	22 857 913
344 652	81 433
(786 319 968)	(48 210 300)
(699 185)	222 062
989 649	152 577
(54 517 230)	(659 784)
1 916 861	(139 182)
(85 114)	(1 282)
34 904	2 719
(2 890 499)	8 665 077
1 451 240 180	13 471 097
(1 545 536 257)	(82 559 241)
1 401 528	(2 247 496)
(1 736 505)	(2 775 871)
628 850	112 241
5 650 197	6 199 936
(1 068 715)	(5 455)
(19 038 064)	18 922 900
(7 395 064)	70 218
(377 362)	(234 155)
1 089 722 667	44 432 901
196 502 963	5 384 048
1 169 994 418	771 123
(68 475 423)	(2 341 988)
1 098 628 496	7 094 212
1 674 656	315 843
(1 558 160)	(1 846 496)
848 147	230 782
(546 120)	(30 503)
85 690	1 584
(10 828 858)	(1 002 530)

The historical cost information has been shown as supplementary information for the benefit of users. This information does not comply with the International Financial Reporting Standards in that it has not taken into account the requirements of International Accounting Standard 29 - Financial Reporting in Hyperinflationary Economies. As a result, the auditors have not expressed an opinion on this historical cost financial information.

Purchase of intangible assets	(631 710)	(2 845)
Net cash outflow from investing activities	(21 916 470)	(11 506 477)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares awaiting allotment	20 609 455	4 905 134
Lease liability principal repayment	(276 161)	(147 242)
Interest on lease liability paid	(60 177)	(18 448)
Net cash inflow from financing activities	20 273 117	4 739 444
Net increase /(decrease) in cash and cash equivalents	1 998 102 040	(5 647 487)
Cash and cash equivalents at beginning of the period	821 788 207	424 834 429
Exchange gains on foreign cash balances	415 884 636	273 038 039
Inflation effects on cash and cash equivalents	(1 454 270 675)	(196 949 855)
Cash and cash equivalents at end of the period	1 781 504 208	495 275 126

(379 685)	(555)
(10 704 330)	(2 331 875)
14 778 618	1 000 000
(125 891)	(15 516)
(34 904)	(2 719)
14 617 823	981 765
1 102 541 989	5 744 102
263 077 584	39 562 931
415 884 635	55 663 722
-	-
1 781 504 208	100 970 755

	DIRECTORS: Mr. M. L. Holtzman (Chairman) \| Mrs. R. L Gaskin Gain \| Mr. E. U Mashingaidze \| Mr.L. C. Gerken \|
2	Mr. E. E. Galante \| Dr. B. Mudavanhu * \| Mr. T.L. Gumbo * \| *EXECUTIVE

REVIEWED INTERIM CONSOLIDATED FINANCIAL RESULTS

For the half year ended 30 June 2023

GROUP ACCOUNTING POLICIES

For the half year ended 30 June 2023

1. GROUP ACCOUNTING POLICIES

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2022, except for new standards and amendments adopted effective 1 January 2023 (see 1.1c). Several amendments and interpretations apply for the first time in 2023, but do not have an impact on the interim condensed consolidated financial statements of the Group. For a detailed analysis of the Group's accounting policies, kindly refer to the Group's 2022 annual report, which is available at the Company registered offices.

1.1 BASIS OF PREPARATION

The interim condensed consolidated financial statements for the six months ended 30 June 2023 have been prepared in accordance with IAS 34 Interim Financial Reporting as well as the requirements of Companies and Other Business Entities Act (Chapter 24.03), Banking Act (Chapter 24.20), Insurance Act (Chapter 24.07), the Zimbabwe Stock Exchange (ZSE) Listing Rules 2019 and the Securities Act (Chapter 24.25). The consolidated financial results have been restated to take account of inflation in accordance with IAS 29, Financial Reporting in Hyperinflationary Economies. These interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual consolidated financial statements as at 31 December 2022.

NOTES TO THE REVIEWED INFLATION ADJUSTED CONSOLIDATED FINANCIAL RESULTS

For the half year ended 30 June 2023

1.3 INCORPORATION AND ACTIVITIES

The consolidated financial results of the Group for the half year ended 30 June 2023 were authorised for issue in accordance with a resolution of the Board of Directors on 15 September 2023. The Group offers commercial banking, property management, asset management, short term insurance, life assurance, Agro Business and other financial services and is incorporated in Zimbabwe.

Basis of consolidation

The Group's consolidated financial results incorporate the financial results of the Company and entities controlled by the Company.

The Group accounts for business combinations using the acquisition method when the acquired set of activities and assets meets the definition of a business and control is transferred to the Group. In determining whether a particular set of activities and assets is a business, the Group assesses whether the set of assets and activities acquired includes, at a minimum, an input and substantive process and whether the acquired set has the ability to produce outputs. The Group has an option to apply a 'concentration test' that permits a simplified assessment of whether an acquired set of activities and assets is not a business. The optional concentration test is met if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. Any goodwill that arises is tested annually for impairment. Any gain on a bargain purchase is recognised in profit or loss immediately. Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities.

The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognised in profit or loss. Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent consideration that meets the definition of a financial instrument is classified as equity, then it is not re-measured and settlement is accounted for within equity. Otherwise, other contingent consideration is re-measured at fair value at each reporting date and subsequent changes in the fair value of the contingent consideration are recognised in profit or loss. Control is achieved when the Company has power over the investee, is exposed or has rights, to variable returns from its involvement with the investee and has the ability to use its power to affect its returns. The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. The results of subsidiaries acquired or disposed of during the year are incorporated from the dates control was acquired up to the date control ceased. The financial results of the subsidiaries are prepared for the same reporting period as the parent Company, using consistent accounting policies. All intra-group balances, transactions, income and expenses, profits and losses resulting from intra-group transactions that are recognised in assets and liabilities and income and expenses are eliminated in full. Non-controlling interests represent the portion of profit and net assets that is not held by the Group and are presented separately in the consolidated statement of comprehensive income and within equity in the consolidated statement of financial position, separately from parent shareholders' equity.

Use of judgements and estimates

In preparing these financial statements, management has made judgements and estimates that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

The significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those described in the last annual financial statements except for judgements used in applying IFRS 17 which was adopted effective 1 January 2023.

REVIEWED

		INFLATION ADJUSTED	RESTATED
		30 JUNE 2023	30 JUNE 2022
		ZWL$ 000	ZWL$ 000
2.	INTEREST

	Interest Income
	Bankers acceptances	-	1 423 200
	Overdrafts	37 857 270	12 388 682
	Loans	72 822 943	73 855 505
	Mortgage loans	3 238 970	1 358 879
	Staff loans	3 632 792	825 112
	Securities investments	73 469 689	1 718 362
	Other investments	5 475 158	18 253 281
		196 496 822	109 823 021
	Interest expense
	Savings deposits	4 345 160	2 152 007
	Money market deposits	32 659 909	6 559 093
	Other offshore deposits	5 251 661	509 387
	Lease liability	60 177	18 450
		42 316 907	9 238 937
	NET INTEREST INCOME	154 179 915	100 584 084

UNAUDITED

HISTORICAL	RESTATED
30 JUNE 2023	30 JUNE 2022
ZWL$ 000	ZWL$ 000

-	174 902
16 175 225	1 435 685
39 006 020	9 860 627
1 702 215	183 017
1 473 644	106 902
25 611 933	231 922
10 236 604	2 405 837
94 205 641	14 398 892
1 430 093	160 381
13 606 925	864 377
2 909 680	79 647
34 904	2 719
17 981 602	1 107 124
76 224 039	13 291 768

New standards, interpretations and amendments adopted by the Group
1. IFRS 17 Insurance Contracts
  In May 2017, the IASB issued IFRS 17 Insurance Contracts, a comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure. IFRS 17 replaces IFRS 4 Insurance Contracts that was issued in 2005. IFRS 17 applies to all types of insurance contracts (i.e., life, non- life, direct insurance and reinsurance), regardless of the type of entities that issue them, as well as to certain guarantees and financial instruments with discretionary participation features; a few scope exceptions will apply. The overall objective of IFRS 17 is to provide an accounting model for insurance contracts that is more useful and consistent for insurers. In contrast to the requirements in IFRS 4, which are largely based on grandfathering previous local accounting policies, IFRS 17 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects. IFRS 17 is based on a general model, supplemented by a specific adaptation for contracts with direct participation features (the variable fee approach) and a simplified approach (the premium allocation approach) mainly for short-duration contracts.

The main features of the new accounting model for insurance contracts are, as follows:

An explicit, unbiased and probability weighted estimate of the present value of insurance contract fulfilment cash flows, including a risk adjustment for non-financial risk.
A Contractual Service Margin (CSM), a component of the carrying amount of the asset or liability for a group of insurance contracts issued representing the unearned profit that the Group will recognise as it provides coverage in the future.
Certain changes in the expected present value of future cash flows are adjusted against the CSM and thereby recognised in profit or loss over the remaining contractual service period.
The effect of changes in discount rates will be reported in the Statement of Profit or Loss or Other Comprehensive income.
Insurance revenue and insurance service expenses are recognised in the Statement of Comprehensive Income based on the concept of services provided during the period.
Insurance service results (earned revenue less incurred claims) are presented separately from the insurance finance income or expense.
Extensive disclosures to provide information on the recognised amounts from insurance contracts and the nature and extent of risks arising from these contracts.

IFRS 17 Transition

IFRS 17 is effective for annual reporting periods beginning on or after 1 January 2023, with comparative figures required.

On transition date, 1 January 2022, the Group:

Identified, recognised and measured each group of insurance contracts as if IFRS 17 had always been applied.
Identified, recognised and measured assets for insurance acquisition cash flows as if IFRS 17 had always applied. However, no recoverability assessment was performed before the transition date. At transition date, a recoverability assessment was performed and no impairment loss was identified.
Derecognised any existing balances that would not exist had IFRS 17 always applied
Recognised any resulting net difference in equity (Refer to note 28.4.2.)
The new standard has impact on the Group's interim condensed consolidated financial statements. The Group has elected to apply the general measurement model on life assurance and the premium allocation approach on short term insurance products. A detailed analysis of the Group's IFRS 17 accounting policies, is available at the Company registered offices.The numbers disclosed for IFRS 17 may fluctuate as the model is still being adjusted and updated for adoption due to the complexity and degree of judgment required in its implementation. Restated has been included on all comparative numbers, to reflect IFRS 17 related restatements. The group applied the full retrospective transition approach.

Definition of Accounting Estimates - Amendments to IAS 8
The amendments to IAS 8 clarify the distinction between changes in accounting estimates, and changes in accounting policies and the correction of errors. They also clarify how entities use measurement techniques and inputs to develop accounting estimates.
The amendments had no impact on the Group's interim condensed consolidated financial statements.
Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2
The amendments to IAS 1 and IFRS Practice Statement 2, "Making Materiality Judgements", provide guidance and examples to help entities apply materiality judgements to accounting policy disclosures. The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their 'significant' accounting policies with a requirement to disclose their 'material' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.
The amendments had no impact on the Group's interim condensed consolidated financial statements, but are expected to affect the accounting policy disclosures in the Group's annual consolidated financial statements.
Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to IAS 12
The amendments to IAS 12, Income Tax, narrow the scope of the initial recognition exception, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases and decommissioning liabilities.
The amendments had no material impact on the Group's interim condensed consolidated financial statements.
IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information
IFRS S1 requires an entity to disclose information about its sustainability-related risks and opportunities that is useful to users of general purpose financial reports in making decisions relating to providing resources to the entity.
The standard requires an entity to disclose information about all sustainability-related risks and opportunities that could reasonably be expected to affect the entity's cash flows, its access to finance or cost of capital over the short, medium or long term (collectively referred to as 'sustainability-related risks and opportunities that could reasonably be expected to affect the entity's prospects').
IFRS S1 is effective for annual reporting periods beginning on or after 1 January 2024. The Group decided to early adopt the standard together with IFRS S2 Climate- related Disclosures. The standard had no impact on the Group's interim condensed consolidated financial statements.
IFRS S2 Climate-related Disclosures
IFRS S2 requires an entity to disclose information about its climate-related risks and opportunities that is useful to users of general purpose financial reports in making decisions relating to providing resources to the entity.
The standard requires an entity to disclose information about climate-related risks and opportunities that could reasonably be expected to affect the entity's cash flows, its access to finance or cost of capital over the short, medium or long term (collectively referred to as 'climate-related risks and opportunities that could reasonably be expected to affect the entity's prospects').
IFRS S2 is effective for annual reporting periods beginning on or after 1 January 2024. The Group decided to early adopt the standard together with IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information. The standard had no impact on the Group's interim condensed consolidated financial statements.

1.2 Application of IAS 29 (Financial Reporting in Hyperinflationary Economies)

The Consolidated interim financial results for the period ended 30 June 2023 have been prepared in accordance with IAS 29 (Financial Reporting in Hyperinflationary Economies). Following the pronouncement of SI 27 of 2023, Census and Statistics (General) Notice, 2023 which introduced blended inflation rates replacing the ZWL$ inflation rates and Consumer Price Index (CPI) effective February 2023, the Group used a combination of the Zimbabwe consumer price index (CPI) compiled by Zimbabwe National Statistics Agency (ZIMSTAT) up to January 2023 and an internal estimation based on the published Total Consumption Poverty Line (TCPL) from February to June 2023 to determine the Consumer Price Index (CPI). The indices and conversion factors used to restate these financials are given below.

Date	Indices	Pecentage (%) movement	Conversion Factors

30	JUNE 2023	42,710.72	212%	1.0000

31	DECEMBER 2022	13,672.91	57%	3.1237

30	JUNE 2022	8,707.35	192%	4.9051

30	JUNE 2021	2,986.44		14.3015

The procedures applied in the above restatement of transactions and balances are as follows:

All comparative figures as at end of the period 31 December 2022 and 30 June 2022 were restated by applying the change in the index from the date of last re- measurement to 30 June 2023. Restated has also been included on these prior period inflation adjusted numbers, to reflect restatement to June 2023 purchasing power.
Monetary assets and liabilities were not restated because they are already stated in terms of the measuring unit current at the reporting date.
Non-monetaryassets and liabilities that are not carried at amounts current at balance sheet and components of shareholders' equity were restated by applying the change in the index from the date of the transaction or if applicable from the date of their most recent revaluation to 30 June 2023. Property and equipment is restated by applying the change in the index from the date of transaction to 30 June 2023.
Items recognised in the income statement have been restated by applying the change in the general price index from the dates when the transactions were initially earned or incurred. Depreciation and amortisation amounts are based on the restated costs or carrying amounts.
Income statement items/transactions, except for depreciation and amortisation charges explained above, are restated by applying the monthly index for the period ended 30 June 2023.
Opening deferred tax was calculated for temporary differences between tax bases of assets and liabilities and their carrying amounts expressed in the purchasing power at the opening balance sheet date. The calculated tax was then inflated to the purchasing power at the reporting date. The closing deferred tax position was calculated based on the applicable temporary differences between the tax base and the IAS 29-adjusted IFRS balance sheet (i.e. expressed in the measuring unit current at the balance sheet date).
The financial statements of the group subsidiaries that do not report in the currencies of hyperinflationary economies was accounted for in accordance with IAS 21. Comparative figures were restated by applying the change in the index from the date of last re-measurement to 30 June 2023.
Gains and losses arising from the net monetary position are included in the statement of profit or loss and in the statement of cash flows as non-cash items.
All items in the statement of cash flows are expressed in terms of the general price index at the end of the reporting period.
The inflation effects on cash and cash equivalents were shown separately in the reconciliation of cash and cash equivalents. The Group considered the broad objectives of IAS 29 and IAS 7 to appropriately present and disclose the effects of inflation on cash and cash equivalents.

Interest Income and Interest expense is calculated using the Effective Interest Rate method.

3	NON-INTEREST INCOME
	Fair value adjustments on financial instruments	21 847 137	(10 505 125)	32 144 506	1 745 397
	Fair value adjustments on investment properties	183 687 411	33 638 789	243 188 934	13 558 805
	Net income from trading securities	353 484	971 153	136 234	119 020
	Net income from foreign currency dealing	37 165 917	6 110 498	27 602 340	881 126
	Unrealised gains on foreign currency exchange	786 319 968	236 478 003	786 319 968	48 210 300
	Agro business income	9 127 789	40 849 405	5 050 433	7 251 249
	Commission and fee income	85 952 216	53 816 682	43 558 015	7 035 140
	Profit on disposal of property and equipment	100 657	8 290	85 114	1 282
	(Loss)/ Profit on disposal of investment property	710 867	(2 426 719)	699 185	(222 062)
	Bad debts recovered	784 331	110 228	434 380	14 111
	Property sales	8 005 387	(2 042 572)	5 145 998	114 566
	Lease income	1 743 956	709 248	851 494	103 368
	Other operating income	6 743 223	798 850	4 027 347	83 319
	Total non interest income	1 142 542 343	358 516 730	1 149 243 948	78 895 621

Included in unrealised gains, are exchange gains on foreign currency monetary balances held largely by the Banking operations and Agro business segments. Commision and fee income largely comprises income earned from banking operations.

4. INSURANCE INCOME

4.1	Insurance service result
	Insurance revenue (i)	12 046 262	5 212 185	5 596 972	676 472
	Insurance service expenses (ii)	(36 181 249)	(15 739 142)	(19 894 275)	(2 047 467)
	Net income/(expenses) from reinsurance contracts held (iii)	10 411 077	442 621	5 865 416	63 931
	Insurance service result		(13 723 910)	(10 084 336)	(8 431 887)	(1 307 064)
(i)	Insurance revenue
	Changes in Liability for remaining coverage	3 595 669	312 621	1 825 008	22 999
	Revenue from contracts measured
	under Premium Allocation Approach (PAA)	8 450 593	4 899 564	3 771 964	653 473

	Total		12 046 262	5 212 185	5 596 972	676 472

Included in liability for remaining coverage is a combined impact of largely contractual service margin and related changes, risk adjustments and experience adjustments resulting from remeasurement of insurance contract assets under the general measurement model.

(ii)	Insurance service expenses
	Incurred claims and other directly attributable expenses	23 716 950	11 466 932	12 998 793	1 478 832
	Changes to liabilities for incurred claims	7 500 366	900 723	4 408 726	138 581
	Onerous contracts	3 226 186	2 188 033	1 637 474	275 352
	Insurance acquisition cashflow armotisation	1 735 723	1 182 081	848 254	154 529
	Other	2 024	1 373	1 028	173
	Total		36 181 249	15 739 142	19 894 275	2 047 467

Other directly attributable expenses include, allocation for employee benefits and other administrative costs directy attributable to insurance service

Net income/ expenses from reinsurance contracts held

Reinsurance expenses for contracts measured under PAA	(4 037 375)	(1 816 778)	(1 714 794)	(238 790)
Claims recovered from reinsurance contracts under PAA	14 448 452	2 259 399	7 580 210	302 721
Total		10 411 077	442 621	5 865 416	63 931

4.2 Net insurance finance cost

	Expenses from insurance contracts issued	483 040	356 070	245 170	44 809
		483 040	356 070	245 170	44 809
5	OPERATING EXPENDITURE
	Staff costs	159 927 282	93 213 251	81 289 389	14 964 050
	Administration expenses	48 167 574	24 107 820	22 622 903	3 178 332
	Audit fees	1 744 294	509 263	832 420	85 698
	Depreciation	8 356 139	3 568 180	2 136 743	367 331
	Amortisation of intangible assets	1 316 287	395 410	78 533	40 871
	Property cost of sales	4 017 523	419 065	962 697	11 822
	Write off & Impairment of property and equipment	1 583 989	13 378	506 783	415
	Write off intangible assets	-	36 686	-	3 599
	Write offs of right of use asset and lease liability	(35 585)	-	(13 530)	-
		225 077 503	122 263 053	108 415 938	18 652 118

Remuneration of directors and key management personnel (included in staff costs)

	Fees for services as directors	3 073 226	79 331	1 206 863	9 968
	Pension and retirement benefits for past and present directors	1 231 549	288 584	483 632	36 259
	Salaries and other benefits	18 399 348	6 488 115	7 225 466	815 197
			22 704 123	6 856 030	8 915 961	861 424
	Short term employment benefits	21 472 574	6 567 446	8 432 329	825 165
	Post employment benefits	1 231 549	288 584	483 632	36 259
			22 704 123	6 856 030	8 915 961	861 424
6	INCOME TAX EXPENSE

6.1 The following constitutes the major components of income tax expense recognised in the Statement of Profit or Loss.

	Analysis of tax charge in respect of the profit for the period
	Current income tax charge	27 910 199	21 247 202	27 910 199	4 331 625
	Deferred income tax	161 796 789	39 789 353	135 314 290	7 668 006
	Income tax expense		189 706 988	61 036 555	163 224 489	11 999 631
6.2	Tax rate reconciliation	%	%	%	%
	Notional Tax	24.00	24.00	24.00	24.00
	Aids levy	0.72	0.72	0.72	0.72
	Exempt income	(3.66)	(2.09)	(5.28)	(2.96)
	Non-Deductible expenditure	8.22	21.27	0.81	3.90
	Effect of rebasing tax bases	(0.45)	0.12	(0.43)	0.09
	Effect of special tax rate	(2.88)	(1.63)	(2.47)	(0.85)
	Tax credits	(0.09)	(0.70)	(0.03)	(0.83)
	Effective tax rate		25.86	41.69	17.32	24.07
	Included in exempt income is income from government bills mortgage housing income and dividend income. Non- Deductible expenses	include
	expenditure on exempt income	excess pension costs and disallowable donations.

6.3 The following constitutes the major components of deferred income tax expense recognised in the Statement of Other Comprehensive

Income.
Revaluation of property and equipment	40 031 462	5 418 373	62 044 573	2 258 735
Unlisted equities	5 732 234	(3 235)	7 550 710	134 777
Total taxation relating to components of
other comprehensive income	45 763 696	5 415 138	69 595 283	2 393 512

3	DIRECTORS: Mr. M. L. Holtzman (Chairman) \| Mrs. R. L Gaskin Gain \| Mr. E. U Mashingaidze \| Mr.L. C. Gerken \|
Mr. E. E. Galante \| Dr. B. Mudavanhu * \| Mr. T.L. Gumbo * \| *EXECUTIVE

REVIEWED INTERIM CONSOLIDATED FINANCIAL RESULTS

For the half year ended 30 June 2023

7.EARNINGS PER SHARE

Basic earnings per share is calculated by dividing profit for the period attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding at the end of the period.

Diluted earnings per share is calculated by dividing the profit attributable to ordinary equity holders of the parent by sum of the weighted average number of ordinary shares outstanding at the end of the period and the weighted average number of potentially dilutive ordinary shares.

The following reflects the income and shareholding data used in the basic and diluted earnings per share computations:

REVIEWED		UNAUDITED

INFLATION ADJUSTED	RESTATED	HISTORICAL	RESTATED
30 JUNE 2023	30 JUNE 2022	30 JUNE 2023	30 JUNE 2022
ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000

7.1 Annualised earnings per share (ZWL cents)

Basic	208 368.29	30 583.52	298 604.18	14 269.14
Diluted basic	208 368.29	30 583.52	298 604.18	14 269.14
Headline	155 601.65	21 593.38	228 233.45	10 426.64

7.2 Earnings attributable to holders of parent

Basic	543 857 916	79 825 441	779 380 803	37 243 608
Diluted basic	543 857 916	79 825 441	779 380 803	37 243 608
Headline	406 132 756	56 360 441	595 707 568	27 214 352

7.3 Number of shares used in calculations (weighted)

Basic	522 016	522 016	522 016	522 016
Diluted basic	522 016	522 016	522 016	522 016
Headline	522 016	522 016	522 016	522 016

7.4 Reconciliation of denominators used for calculating basic and diluted earnings per share:

	Weighted average number of shares used for EPS	522 016	522 016	522 016	522 016.00
7.5	Headline Earnings
	Profit attributable to ordinary shareholders	543 857 916	79 825 441	779 380 803	37 243 608
	Adjusted to exclude re-measurements
	Write off & impairment of property and equipment	1 583 989	13 378	-	11 823
	Write off of right of use asset and lease liability	(35 586)	-	(13 530)	-
	Write off of intangible assets	-	36 686	-	3 599
	Disposal gain on property and equipment	(100 657)	(8 290)	(85 114)	(1 282)
	Profit/(loss) on disposal of investment property	(710 867)	2 426 717	(699 185)	222 062
	Gain on investment properties valuation	(183 687 411)	(33 638 789)	(243 188 934)	(13 558 805)
	Tax relating to remeasurements	45 225 372	7 705 298	60 313 528	3 293 347
	Headline earnings	406 132 756	56 360 441	595 707 568	27 214 352
8.	DIVIDENDS
	Proposed dividend on ordinary shares:
	Interim dividend	17 850 305	-	17 850 305	-

		REVIEWED

		INFLATION ADJUSTED	RESTATED
		30 JUNE 2023	31 DEC 2022
		ZWL$ 000	ZWL$ 000
12.2	Maturity analysis

	Less than 1 month	403 951 775		2 300 591
	Between 1 and 3 months	66 687 735		22 978 341
	Between 3 and 6 months	361 476 789		141 069 348
	Between 6 months and 1 year	408 323 321		400 457 806
	Between 1 and 5 years	693 002 078		187 224 509
	More than 5 years	16 613 233		20 357 177
		1 950 054 931		774 387 772

Maturity analysis is based on the remaining period from 30 June 2023 to contractual maturity.

12.3	Loans to directors and key management
	Opening balance	6 958 209	6 707 850
	Advances made during the period	9 516 720	9 725 460
	Monetary adjustment	(10 013 157)	(8 842 623)
	Repayment during the period	(818 404)	(632 478)
	Closing balance	5 643 368	6 958 209
	Loans to employees
	Included in advances are loans to employees: -
	Opening balance	15 976 652	13 506 158
	Advances made during the period	30 770 718	24 278 529
	Monetary adjustment	(27 711 172)	(19 409 274)
	Repayments during the period	(3 026 339)	(2 398 761)
	Closing balance	16 009 859	15 976 652

12.4 Allowance for Expected Credit Loss (ECL)

	Opening balance	223 924 274	86 669 670
	Credit loss expense on loans and advances	147 009 042	218 338 671
	Foreign exchange losses	232 150 134	-
	Monetary adjustment	(152 239 798)	(61 457 399)
	Amounts written off during the period	(246 642 514)	(19 626 668)
	Closing balance	204 201 138	223 924 274
12.5	Collateral
	Government Guarantee	238 027 033	19 909 798
	Cash cover	-	3 138 244
	Registered Marketable Commodities	190 635 948	-
	Mortgage bonds	663 577 102	180 412 453
	Notarial general covering bonds	377 732 866	307 721 123
		1 469 972 949	511 181 618

UNAUDITED

HISTORICAL	RESTATED
30 JUNE 2023	31 DEC 2022
ZWL$ 000	ZWL$ 000

403 951 775	736 484
66 687 735	7 356 015
361 476 789	45 160 277
408 323 321	128 197 839
693 002 078	59 935 846
16 613 233	6 516 907
1 950 054 931	247 903 368
2 227 519	624 672
3 737 238	1 714 335
-	-
(321 389)	(111 488)
5 643 368	2 227 519
5 114 577	1 257 768
12 083 731	4 279 645
-	-
(1 188 449)	(422 836)
16 009 859	5 114 577
71 684 476	8 071 159
147 009 042	69 896 367
232 150 134	-
-	-
(246 642 514)	(6 283 050)
204 201 138	71 684 476
238 027 033	6 373 688
-	1 004 641
190 635 948	45 732 237
663 577 102	57 755 115
377 732 866	98 510 211
1 469 972 949	209 375 892

	Interim dividend per share (ZWL$)	31.227		-	31.227	-
	There were no dividends paid during the interim period under review or its comparative period. Proposed dividends are paid on qualifying
	shares held at the record date.
			REVIEWED			UNAUDITED

		INFLATION ADJUSTED	RESTATED		HISTORICAL	RESTATED
			30 JUNE 2023	31 DEC 2022		30 JUNE 2023	31 DEC 2022
			ZWL$ 000	ZWL$ 000		ZWL$ 000	ZWL$ 000
9.	CASH AND CASH EQUIVALENTS
	Balances with local banks	68 116 127		10 734 705	68 116 127	3 436 482
	Cash and current accounts	469 426 115		119 515 976	469 426 115	38 260 435
	Balances with foreign banks	78 265 753		105 229 534	78 265 753	33 686 942
	Balances with the Reserve Bank of Zimbabwe	983 499 702		519 587 059	983 499 702	166 334 473
	RBZ Statutory reserve	182 196 511		66 720 933	182 196 511	21 359 252
			1 781 504 208		821 788 207	1 781 504 208	263 077 584
	The cash and cash equivalents balance represent the Group's cash and cash equivalent balance. RBZ Statutory reserve balances relates to
	restricted liquid reserve determined in line with the RBZ Statutory reserve guidelines currently 10% and 15% for foreign and local currency
	demand deposits respectively and 5% for all term deposits.
	Included in cash and cash equivalents are the following balances that are reserved and restricted in nature and are not available for use by the Group:
	RBZ Statutory reserve	182 196 511		66 720 933	182 196 511	21 359 252
	Amounts secured as guarantees or collateral	8 393 722		13 995 215	8 393 722	4 480 263
			190 590 233		80 716 148	190 590 233	25 839 515
10.	MONEY MARKET ASSETS
	Interbank placements	454 424 975		110 991 023	454 424 975	35 531 357
	Bankers acceptances	1 879 991		644 076	1 879 991	206 187
	Accrued interest	11 529 679		980 789	11 529 679	313 978
	Total gross money market assets		467 834 645		112 615 888	467 834 645	36 051 522
	Allowance for expected credit losses	(26 364 543)		(1 853 548)	(26 364 543)	(593 373)
	Total net money market assets		441 470 102		110 762 340	441 470 102	35 458 149
	Maturity analysis
	The maturity analysis of money market assets is shown below.
	Between 0 and 3 months	193 795 728		46 860 756	193 795 728	15 001 450
	Between 3 and 6 months	82 850 814		33 101 964	82 850 814	10 596 872
	Between 6 and 12 months	149 403 330		32 653 168	149 403 330	10 453 200
	Above 12 months	41 784 773		-	41 784 773	-
			467 834 645		112 615 888	467 834 645	36 051 522
	Maturity analysis is based on the remaining year from 30 June 2023 to contractual maturity.
11.	FINANCIAL SECURITIES
	Treasury bills	50 890 621		151 284 719	50 890 621	48 430 506
	Savings bonds	480 491		166 759	480 491	53 384
	Accrued interest	6 157 101		3 833 665	6 157 101	1 227 264
	Total gross financial securities		57 528 213		155 285 143	57 528 213	49 711 154
	Allowance for expected credit losses		(199 081)		(242 287)	(199 081)	(77 563)
	Total net financial securities		57 329 132		155 042 856	57 329 132	49 633 591
	Maturity analysis
	The maturity analysis of financial securities is shown below:
	Between 0 and 3 months	55 872 342		152 323 567	55 872 342	48 763 070
	Between 6 and 12 months	25 991		-	25 991	-
	Between 1 and 5 years	657 873		633 390	657 873	202 766
	Above 5 years	972 007		2 328 186	972 007	745 318
			57 528 213		155 285 143	57 528 213	49 711 154
	Maturity analysis is based on the remaining period from 30 June 2022 to contractual maturity.
12.	LOANS AND ADVANCES TO CUSTOMERS

13. EXPECTED CREDIT LOSSES (ECL) ON FINANCIAL ASSETS AND INSURANCE ASSETS

The table below shows the (ECL) charges on financial assets and insurance contract assets for the period recorded in the Statement of Profit or Loss:

			INFLATION ADJUSTED

	Stage 1 ZWL$ 000	Stage 2 ZWL$ 000	Stage 3 ZWL$ 000	Total ZWL$ 000
	30 JUNE 2023	30 JUNE 2022	30 JUNE 2023	30 JUNE 2022	30 JUNE 2023	30 JUNE 2022	30 JUNE 2023	30 JUNE 2022


Money market	17 639 384	1 982 871	-	-	-	-	17 639 384	1 982 871
assets


Financial securities	122 986	(2 845)	-	-	-	-	122 986	(2 845)

Loans and
advances to	13 476 534	18 323 285	1 565 964	2 433 324	131 966 544	88 675 756	147 009 042	109 432 365
customers

Financial	(238 809)	819	-	-	-	-	(238 809)	819
guarantees


Other	593 846	595 173	(148 561)	(10 585)	422 957	45 049	868 242	629 637
commitments


Lease receivables	-	-	(21 622)	24 153	4 334	54 138	(17 288)	78 291

	31 593 941	20 899 303	1 395 781	2 446 892	132 393 835	88 774 943	165 383 557	112 121 138

Insurance contract	-	399 441	-	-	344 652	-	344 652	399 441
assets


Total	31 593 941	21 298 744	1 395 781	2 446 892	132 738 487	88 774 943	165 728 209	112 520 579

			UNAUDITED HISTORICAL

	Stage 1 ZWL$ 000	Stage 2 ZWL$ 000	Stage 3 ZWL$ 000	Total ZWL$ 000
	30 JUNE 2023	30 JUNE 2022	30 JUNE 2023	30 JUNE 2022	30 JUNE 2023	30 JUNE 2022	30 JUNE 2023	30 JUNE 2022


Money market	17 639 384	404 244	-	-	-	-	17 639 384	404 244
assets


Financial securities	122 986	(580)	-	-	-	-	122 986	(580)

Loans and
advances to	13 476 534	3 735 531	1 565 964	496 077	131 966 544	18 078 150	147 009 042	22 309 758
customers

Financial	(238 809)	167	-	-	-	-	(238 809)	167
guarantees


Other	593 846	121 337	(148 561)	(2 158)	422 957	9 184	868 242	128 363
commitments


Lease receivables	-	-	(21 622)	4 924	4 334	11 037	(17 288)	15 961

	31 593 941	4 260 699	1 395 781	498 843	132 393 835	18 098 371	165 383 557	22 857 913

Insurance contract	-	81 433	-	-	344 652	-	344 652	81 433
assets


Total	31 593 941	4 342 132	1 395 781	498 843	132 738 487	18 098 371	165 728 209	22 939 346

		REVIEWED				UNAUDITED

		INFLATION ADJUSTED	RESTATED	HISTORICAL	RESTATED
		30 JUNE 2023	31 DEC 2022	30 JUNE 2023	31 DEC 2022
		ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000
14.	OTHER ASSETS

	Prepayments and deposits	52 233 449		48 573 277			35 441 651	10 694 398
	Other receivables	1 429 037 622		837 105 343			1 429 037 622	268 086 411
		1 481 271 071		885 678 620			1 464 479 273	278 780 809

Included in other receivables is an amount of ZWL$859,408,829,968 (2022: ZWL$105 680 795 658) which relates to the RBZ financial asset

in lieu of legacy debt registration and promisory notes receivable amounting to ZWL$ 522 426 247 056.80 (2022: NIL). Guarantee receivable amounting to ZWL$ 461 768 973 215 at 31 December 2022 was settled during the period. RBZ committed to provide foreign currency to the Group for all registered legacy liabilities and nostro gap accounts at an exchange rate of US$1:Z$1, .

The RBZ financial asset is denominated in US Dollars and has been translated to ZWL$ using the closing exchange rate in line with the treatment of monetary assets denominated in foreign currencies prescribed in IAS 21.

	Overdrafts				231 152 663		80 254 853	231 152 663	25 691 842
	Commercial loans				1 326 303 526		418 286 729	1 326 303 526	133 905 380
	Staff loans				21 653 223		22 934 852	21 653 223	7 342 093
	Mortgate advances				81 350 954		25 020 997	81 350 954	8 009 927
	Agro business loans				213 667 948		161 012 801	213 667 948	51 544 739
	Interest accrued				75 926 617		66 877 540	75 926 617	21 409 387
	Total gross loans and advances to customers			1 950 054 931		774 387 772	1 950 054 931	247 903 368
	Allowance for Expected Credit Loss (ECL)			(204 201 138)	(223 924 274)	(204 201 138)	(71 684 476)
	Total net advances				1 745 853 793		550 463 498	1 745 853 793	176 218 892
				REVIEWED						UNAUDITED
			INFLATION ADJUSTED			RESTATED				HISTORICAL		HISTORICAL
			30 JUNE 2023	%	31 DEC 2022	%			30 JUNE 2022	%	31 DEC 2022	%
			ZWL$ 000	ZWL$ 000			ZWL$ 000		ZWL$ 000

12.1	Sectoral analysis:
	Private	221 086 364	11	77 617 410	10	221 086 364	11		24 847 523	10
	Agriculture	406 696 787	21	276 796 657	36	406 696 787	21		88 610 417	36
	Mining	427 642 374	22	77 784 355	10	427 642 374	22		24 900 966	10
	Manufacturing	344 289 725	18	99 834 075	13	344 289 725	18		31 959 703	13
	Distribution	324 587 139	17	132 971 170	17	324 587 139	17		42 567 822	17
	Construction	37 051 703	2	9 928 101	1	37 051 703	2		3 178 265	1
	Transport	51 905	-	2 041 863	-	51 905	-		653 658	-
	Communication	79 466 660	4	20 332 788	3	79 466 660	4		6 509 099	3
	Services	107 013 549	5	75 994 882	10	107 013 549	5		24 328 105	10
	Financial organisations	2 168 725	-	1 086 471	-	2 168 725	-		347 810	-
			1 950 054 931	100	774 387 772	100	1 950 054 931	100	247 903 368	100

				REVIEWED

			INFLATION ADJUSTED	RESTATED
				30 JUNE 2023	31 DEC 2022
				ZWL$ 000	ZWL$ 000
15.	LAND INVENTORY

	Opening balance		64 978 242		63 910 101
	Additions		1 706 514		5 570 862
	Disposals		(4 017 522)		(4 502 721)
	Closing balance		62 667 234		64 978 242
16.	EQUITY INVESTMENTS
	Opening balance		54 150 233		58 222 908
	Additions		3 101 238		4 903 161
	Disposals		(2 316 290)		(4 376 834)
	Write offs		-		(6)
	Fair value adjustments through profit or loss		21 847 137		(18 199 946)
	Fair value adjustments through other comprehensive	income	59 438 884		13 600 950
				136 221 202		54 150 233
16.1	Investments in Equities
	Listed investments		37 659 886		16 093 134
	Unlisted investments		98 561 316		38 057 099
				136 221 202		54 150 233
	Equity investment designated at fair value
	through profit or loss		37 659 886		16 093 134
	Equity investment designated at fair value
	through other comprehensive income		98 561 316		38 057 099
				136 221 202		54 150 233

UNAUDITED

HISTORICAL	RESTATED
30 JUNE 2023	31 DEC 2022
ZWL$ 000	ZWL$ 000

1 657 513	552 094
1 340 060	1 517 510
(962 698)	(412 091)
2 034 875	1 657 513
17 335 017	5 422 039
1 558 160	820 408
(848 147)	(867 965)
-	(1)
32 144 506	2 204 496
86 031 666	9 756 040
136 221 202	17 335 017
37 659 886	5 151 866
98 561 316	12 183 151
136 221 202	17 335 017
37 659 886	5 151 866
98 561 316	12 183 151
136 221 202	17 335 017

	DIRECTORS: Mr. M. L. Holtzman (Chairman) \| Mrs. R. L Gaskin Gain \| Mr. E. U Mashingaidze \| Mr.L. C. Gerken \|
4	Mr. E. E. Galante \| Dr. B. Mudavanhu * \| Mr. T.L. Gumbo * \| *EXECUTIVE

REVIEWED INTERIM CONSOLIDATED FINANCIAL RESULTS

For the half year ended 30 June 2023

				REVIEWED							UNAUDITED

		INFLATION ADJUSTED			RESTATED					HISTORICAL		HISTORICAL
			30 JUNE 2023	%	31 DEC 2022	%				30 JUNE 2022	%	31 DEC 2022	%
			ZWL$ 000	ZWL$ 000					ZWL$ 000	ZWL$ 000

16.2	Investment in subsidiaries
	CBZ Bank Limited	10 503 638	100	10 503 629	100					21 840	100	21 840	100
	CBZ Asset Management (Private) Limited	1 654 279	100	956 086	100					227 900	100	1 988	100
	CBZ Insurance (Private) Limited	5 702 605	98.4	2 043 544	98.4					1 207 557	98.4	23 615	98.4
	CBZ Properties (Private) Limited	7 172 510	100	3 009 032	100					1 574 021	100	226 867	100
	CBZ Life Assurance (Private) Limited	5 470 046	100	667 539	100					1 555 305	100	1 388	100
	CBZ Asset Management Mauritius	7 034 246	100	7 034 247	100					691 550	100	691 550	100
	CBZ Risk Advisory Services (Private) Limited	2 628 689	100	646 900	100					642 581	100	1 345	100
	Red Sphere Finance (Private) Limted	5 759 983	100	4 722 336	100					586 270	100	250 520	100
	CBZ Agro Yield (Private) Limited	106 004	100	105 998	100					1 000	100	1 000	100
	CBZ South Africa Private Limited	3 340 133	100	294 994	100					2 614 961	100	88 499 100
			49 372 133			29 984 305						9 122 985		1 308 612
17.	CATEGORIES OF FINANCIAL ASSETS
						At fair value	At fair value				Total
						through	through	At amortised	carrying
						profit or loss			OCI		cost	amount
						ZWL$ 000	ZWL$ 000		ZWL$ 000	ZWL$ 000

			REVIEWED INFLATION ADJUSTED

	30 JUNE 2023
	Balances with banks and cash				-	-	1 781 504 208	1 781 504 208
	Money market assets				-	-	441 470 102	441 470 102
	Financial securities				-	-		57 329 132	57 329 132
	Loans and advances to customers				-	-	1 745 853 793	1 745 853 793
	Equity investments				37 659 886	98 561 316		-	136 221 202
	Other assets				-	-	1 429 037 622	1 429 037 622
	TOTAL ASSETS				37 659 886	98 561 316	5 455 194 857	5 591 416 059
	31 DEC 2022
	Balances with banks and cash				-	-	821 788 207	821 788 207
	Money market assets				-	-	110 762 340	110 762 340
	Financial securities				-	-	155 042 856	155 042 856
	Loans and advances to customers				-	-	550 463 498	550 463 498
	Equity investments				16 093 134	38 057 100		-	54 150 234
	Other assets				-	-	837 105 343	837 105 343
	TOTAL ASSETS				16 093 134	38 057 100	2 475 162 244	2 529 312 478
						At fair value	At fair value				Total
						through	through	At amortised	carrying
						profit or loss			OCI		cost	amount
						ZWL$ 000	ZWL$ 000		ZWL$ 000	ZWL$ 000
			UNAUDITED HISTORICAL
	30 JUNE 2023
	Balances with banks and cash				-	-	1 781 504 208	1 781 504 208
	Money market assets				-	-	441 470 102	441 470 102
	Financial securities				-	-		57 329 132	57 329 132
	Loans and advances to customers				-	-	1 745 853 793	1 745 853 793
	Equity investments				37 659 886	98 561 316		-	136 221 202
	Other assets				-	-	1 429 037 622	1 429 037 622
	TOTAL ASSETS				37 659 886	98 561 316	5 455 194 857	5 591 416 059
	31 DEC 2022
	Balances with banks and cash				-	-	263 077 584	263 077 584
	Money market assets				-	-		35 458 149	35 458 149
	Financial securities				-	-		49 633 591	49 633 591
	Loans and advances to customers				-	-	176 218 892	176 218 892
	Equity investments				5 151 866	12 183 151		-	17 335 017
	Other assets				-	-	267 981 031	267 981 031
	TOTAL ASSETS				5 151 866	12 183 151	792 369 247	809 704 264

Fair value of assets measured at armotised cost was not measured as the financial instruments' carrying amount is a reasonable approximate of the fair value on transaction date.

18. FAIR VALUE MEASUREMENT

18.1 The following table presents items of the Statement of Financial Position which are recognised at fair value:

INFLATION ADJUSTED

	Level 1	Level 2	Level 3	Total carrying amount
	30 JUNE 2023	31 DEC 2022	30 JUNE 2023	31 DEC 2022	30 JUNE 2023	31 DEC 2022	30 JUNE 2023	31 DEC 2022
	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000
Equity investments	37 659 886	16 093 134	-	-	98 561 316	38 057 100	136 221 202	54 150 234

Land and buildings	-	-	288 952 620	95 221 741	-	-	288 952 620	95 221 741

Investment properties	-	-	271 351 556	89 314 133	-	-	271 351 556	89 314 133

Total assets at fair	37 659 886	16 093 134	560 304 176	184 535 874	98 561 316	38 057 100	696 525 378	238 686 108
value

Level 2 valuation techniques are highlighted on note 20 for Property and equipment and note 21 for Investment properties.

19.PROPERTY AND EQUIPMENT

REVIEWED INFLATION ADJUSTED

			Leasehold	Motor			Furniture &	Work in
	Land	Buildings	improvements	vehicles	Computer	Equipment	Fittings	progress	Total
	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000
30 JUNE 2023
COST
Opening balance	12 592 531	85 357 628	995 211	4 993 237	31 962 794	9 395 140	6 411 853	17 601 112	169 309 506
Additions	-	809 035	-	380 838	931 305	570 740	581 891	20 604 194	23 878 003
Revaluation gain	25 461 711	167 782 686	-	-	-	-	-	-	193 244 397
Disposals	-	-	-	(82 796)	(2 073)	(528)	(272)	-	(85 669)
Write offs	-	(67 238)	-	-	(2 957)	(450)	(184)	(1 582 435)	(1 653 264)

Closing balance	38 054 242	253 882 111	995 211	5 291 279	32 889 069	9 964 902	6 993 288	36 622 871	384 692 973
Accumulated depreciation
Opening balance	-	2 290 573	547 956	3 496 425	12 275 116	5 714 298	2 749 467	-	27 073 835
Charge for the period	-	4 196 399	46 719	427 062	3 055 704	636 972	207 560	-	8 570 416
Disposals	-	-	-	(56 577)	(1 452)	(476)	(186)	-	(58 691)
Write offs	-	(54 574)	-	-	(1 480)	(405)	(152)	-	(56 611)
Revaluation	-	(3 909 152)	-	-	-	-	-	-	(3 909 152)

Closing balance	-	2 523 246	594 675	3 866 910	15 327 888	6 350 389	2 956 689	-	31 619 797
Net Book Value	38 054 242	251 358 865	400 536	1 424 369	17 561 181	3 614 513	4 036 599	36 622 871	353 073 176

AUDITED INFLATION ADJUSTED

31 DEC 2022
COST
Opening balance	8 880 172	64 617 215	981 579	3 713 206	23 600 641	7 782 170	4 924 343	7 103 821	121 603 137
Additions	-	499 291	85 063	1 103 608	8 443 939	1 739 422	1 494 982	10 673 714	24 040 019
Revaluation gain	3 712 369	20 243 208	-	-	-	-	-	-	23 955 577
Impairments	-	-	(71 431)	-	-	-	-	-	(71 431)
Disposals	-	-	-	-	(35 986)	(2 805)	(1 359)	-	(40 150)
Write offs	-	(2 086)	-	-	(45 800)	(123 647)	(6 113)	-	(177 646)
Intercategory transfers	-	-	-	176 423	-	-	-	(176 423)	-
Closing balance	12 592 531	85 357 628	995 211	4 993 237	31 962 794	9 395 140	6 411 853	17 601 112	169 309 506
Accumulated depreciation
Opening balance	-	1 422 308	457 092	2 855 137	11 099 509	5 416 046	2 537 886	-	23 787 978
Charge for the period	-	5 732 278	90 864	641 862	1 223 079	421 684	212 690	-	8 322 457
Disposals	-	-	-	-	(20 161)	(2 527)	(950)	-	(23 638)
Write offs	-	(84)	-	(574)	(27 311)	(120 905)	(159)	-	(149 033)
Revaluation	-	(4 863 929)	-	-	-	-	-	-	(4 863 929)
Closing balance	-	2 290 573	547 956	3 496 425	12 275 116	5 714 298	2 749 467	-	27 073 835
Net Book Value	12 592 531	83 067 055	447 255	1 496 812	19 687 678	3 680 842	3 662 386	17 601 112	142 235 671

UNAUDITED HISTORICAL

			Leasehold	Motor			Furniture &	Work in
	Land	Buildings	improvements	vehicles	Computer	Equipment	Fittings	progress	Total
	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000
30 JUNE 2023
COST
Opening balance	4 031 223	26 649 788	40 637	378 275	3 135 567	578 909	499 106	2 703 906	38 017 411
Additions	-	698 182	-	139 301	419 037	298 787	360 506	9 727 701	11 643 514
Revaluation gain	34 023 019	223 960 104	-	-	-	-	-	-	257 983 123
Disposals	-	-	-	(1 093)	(685)	(169)	(87)	-	(2 034)
Write offs	-	(5 594)	-	-	(342)	(144)	(61)	(506 582)	(512 723)
Closing balance	38 054 242	251 302 480	40 637	516 483	3 553 577	877 383	859 464	11 925 025	307 129 291
Accumulated depreciation
Opening balance	-	86 362	3 489	52 663	211 968	42 960	26 296	-	423 738
Charge for the period	-	1 696 991	1 060	41 131	348 172	55 923	32 342	-	2 175 619
Disposals	-	-	-	(747)	(499)	(152)	(60)	-	(1 458)
Write offs	-	(3 679)	-	-	(166)	(130)	(49)	-	(4 024)
Revaluation	-	(1 649 776)	-	-	-	-	-	-	(1 649 776)

Closing balance	-	129 898	4 549	93 047	559 475	98 601	58 529	-	944 099
Net Book Value	38 054 242	251 172 582	36 088	423 436	2 994 102	778 782	800 935	11 925 025	306 185 192
31 DEC 2022
COST
Opening balance	826 968	5 848 152	36 987	33 185	569 985	98 331	55 799	104 044	7 573 451
Additions	-	149 085	26 519	328 720	2 572 230	520 422	443 303	2 636 777	6 677 056
Revaluation surplus	3 204 255	20 653 219	-	-	-	-	-	-	23 857 474
Impairments	-	-	(22 869)		-	-	-	-	(22 869)
Disposals	-	-		-	(2 304)	(261)	(126)	-	(2 691)
Write offs	-	(668)	-	(59)	(4 344)	(39 583)	(587)	(19 769)	(65 010)
Intercategory transfers	-	-	-	16 429	-	-	717	(17 146)	-
Closing balance	4 031 223	26 649 788	40 637	378 275	3 135 567	578 909	499 106	2 703 906	38 017 411
Accumulated depreciation
Opening balance	-	29 089	1 996	10 202	97 824	28 977	9 372	-	177 460
Charge for the period	-	1 181 459	1 493	42 514	118 035	25 819	17 043	-	1 386 363
Disposals	-	-	-	-	(1 435)	(235)	(88)	-	(1 758)
Write offs	-	(27)	-	(53)	(2 456)	(11 601)	(31)	-	(14 168)
Revaluation	-	(1 124 159)	-	-	-	-	-	-	(1 124 159)

Closing balance	-	86 362	3 489	52 663	211 968	42 960	26 296	-	423 738
Net Book Value	4 031 223	26 563 426	37 148	325 612	2 923 599	535 949	472 810	2 703 906	37 593 673

UNAUDITED HISTORICAL

	Level 1	Level 2	Level 3	Total carrying amount
	30 JUNE 2023	31 DEC 2022	30 JUNE 2023	31 DEC 2022	30 JUNE 2023	31 DEC 2022	30 JUNE 2023	31 DEC 2022

	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000	ZWL$ 000
	37 659 886	5 151 866	-	-	98 561 316	12 183 151	136 221 202	17 335 017
Equity investments

Land and buildings	-	-	288 952 620	30 483 165	-	-	288 952 620	30 483 165

Investment properties	-	-	271 351 556	28 591 973	-	-	271 351 556	28 591 973

Total assets at fair	37 659 886	5 151 866	560 304 176	59 075 138	98 561 316	12 183 151	696 525 378	76 410 155
value

There were no transfers between Level 1 and Level 2 during 2022.

The fair values of the non-listed equities have been classified as level three investments.

The fair values were derived using a combination of income and market approaches depending on the appropriateness of the methodologies to the type of equity instruments held. The valuation took into account certain assumptions about the model inputs, including but not limited to liquidity discounts, country or jurisdication factors, inflation, credit risk and volatility. A range of probabilities was also applied to these inputs and the fair values derived therefrom were deemed to be within acceptable fair values ranges of the equities.

The following table shows the valuation techniques used in measuring the fair value of unquoted equities as well as the significant unobservable inputs used.

Valuation Technique	Significant unobservable inputs	Interrelationship between key unobservable inputs and fair value
measurement

Earnings Multiple	•	Jurisdiction/country and size discount	The fair values would increase/ decrease if :
	(10-20%)	•	The jurisdiction/country and size discount was higher or lower

Discounted	•	Inflation shock adjusted return (1.5%)	The fair values would increase/ decrease if :
•	The Inflation shock adjusted return was higher/lower
Cash Flow Technique	•	Discount rate (10-15%)
•	The discount rate was lower / higher

If the average jurisdiction or country discount had been at 5% more or less, the impact on other comprehensive income would be ZWL$ 2 823 346 990 and impact on statement of financial position would be ZWL$ 2 971 944 200.

The carrying amount of the land and buildings is the fair value of the property as determined by a registered internal appraiser having, an appropriate recognised professional qualification and recent experience in the location and category of the property being valued. The valuation was in accordance with the Royal Institute of Chartered Surveyors Appraisal and Valuation Manual and the Real Estate Institute of Zimbabwe Standards

In determining the market values of the subject properties, the following was considered:

Comparable market evidence which comprised complete transactions as well as transactions where offers had been made but the transactions had not been finalised,
Professional judgement was exercised to take cognisance of the fact that properties in the transaction were not exactly comparable in terms of size, quality and location to the properties owned by the group.
The reasonableness of the market values of commercial properties so determined, per above bullet, was assessed by reference to the properties in the transaction.
The values per square metre of lettable spaces for both the subject properties and comparables were analysed.
With regards to market values for residential properties, the comparison method was used. This method entails carrying out a valuation by directly comparing the

subject property, which have been sold or rented out. The procedure was performed as follows:

- Surveys and data collection on similar past transactions.
1. Analysis of collected data.
Comparison of the analysis with the subject properties and then carrying out the valuation of the subject properties. Adjustments were made to the following aspects:
1. Age of property - state of repair and maintenance,
2. Aesthetic quality - quality of fixtures and fittings,
3. Structural condition - location,
4. Accommodation offered - size of land.

The maximum useful lives are as
Buildings	40 years
Motor vehicles	3-5 years
Leasehold improvements	10 years
Computer equipment	5 years
Furniture and fittings	10 years

The carrying amount of buildings would have been ZWL$ 20 690 307 843 (December 2022: ZWL$ 20 750 705 088) had they been carried at cost. Property and equipment was tested for impairment through comparison with open market values determined by independent valuers.

If the fair value adjustment had been 5% up or down, the Group's other Comprehensive Income would have been ZWL$ 7 856 104 300 higher or lower than the reported position.

Included in property and equipment are amounts relating to Right of use assets for buildings that are leased by the Group for periods more than one year. The buildings are used by the Group for its various branches and operations.

The information about the leases for which the Group is a lessee is presented below,

5	DIRECTORS: Mr. M. L. Holtzman (Chairman) \| Mrs. R. L Gaskin Gain \| Mr. E. U Mashingaidze \| Mr.L. C. Gerken \|
Mr. E. E. Galante \| Dr. B. Mudavanhu * \| Mr. T.L. Gumbo * \| *EXECUTIVE

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CBZ Holdings Ltd. published this content on 22 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 September 2023 07:19:09 UTC.

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