Group Chief Executive Officer’s Report 2014

Introduction

It is with great pleasure that I report on the Company’s performance for the period ended 31 December 2014. The Group posted yet another set of impressive results which saw all subsidiaries contribute positively to the success of the Group. This strong performance is testimony of the Group’s strength as a leader within the financial services industry in the country.

Key Strategic Focus Areas

Noted below are some of the Group’s focus areas which have become core to our corporate and business strategies.

• Building a diversified business portfolio
• Development of innovative products
• Establishing an international presence through the “product export” strategy
• Utilisation of Group synergies

Implementation of our strategic focus areas at subsidiary level has seen our company grow from strength to strength with the following impact:

Group Performance

The Group performed commendably, with a number of variables comparing well with regional financial services peers. We remain very confident of our ability for growth and performance going forward.

The Group remains well capitalised with all subsidiaries compliant with regulatory benchmarks. We are cognisant of the risks and opportunities inherent in the current operating environment. It is therefore our priority that we balance the risk and return in arriving at business decisions.

It is important to us that we create and preserve shareholder value thus our investment guidelines require us to observe stringent selection criteria in investment options. As such asset mixes have been structured to recognise the challenges obtaining in the operating environment especially the persistent liquidity thinning in the economy. Related to this, is the Group’s drive towards enhancing the quality of earnings and minimising asset and revenue impairments.

To support future business growth, the Group identified customer convenience as a vital trading element. Projects earmarked to expanding the virtual footprint through Mobile technology, Card based products and Agency Banking arrangements were at various stages of implementation by end of the year.

Our internationalisation goals are fast coming to fruition with the CBZ Global Fund Mauritius project set to boost fund raising initiatives. We remain very hopeful and excited of our efforts in achieving our targets in this venture.

Corporate Social Responsibility

We believe that success is measured by more factors than financial ability. Customer satisfaction, employee engagement, strong governance practices and support for our communities are some of our internal key success benchmarks. As CBZ Holdings, we embrace Corporate Social Responsibility (CSR) intiatives that are progressive and conscious of the communities and environment that sustains us as an organisation.

We also value the well-being and protection of the environment in support of the goal of sustainable development. In doing so, we are committed to the need to provide a clean and healthy environment to the current and future generations.

Governance

The Group continues to focus on appropriate corporate behaviour and is compliant with all statutes and expected trading norms. It is pleasing to note that the Group has maintained an adequate governance structure that is subjected to continuous training and development. In this regard, it was an honour to receive awards for best practices in corporate governance during the year.

Outlook

In October 2014, the Group approved a new five year strategic plan for the period 2015 to 2019. Highlighted below are some of the key business principles that are expected to drive and sustain the Group’s performance in the stated period.

• Customer focus - Dedicated to satisfying clients’ needs by being responsive, professional, efficient and reliable.
• Innovative approach - Dedicated to being creative in the development and provision of financial solutions.
• Governance - Applying best practices whilst being dedicated to being ethical, compliant and transparent in all our activities.
• Staff focus - Dedicated to staff empowerment and motivation to foster a culture of productivity and commitment.
• Corporate citizenship - Dedicated to being a responsible good corporate citizen.
• Teamwork - Dedicated to fostering and nurturing a culture of team work amongst staff members.

A number of strategic thrusts which are in line with the business principles set above have been set as benchmarks for the five year period. The attainment of the same is set to underline the achievement of the Group’s objectives of maximising shareholders’ wealth and making a positive impact in our community.

Our Staff

Our human resources define our corporate image and are the Group’s interface with our clients. It is through them that our strategy is implemented and, consequently, they are the difference between the Group’s success and failure. We believe it is important that everyone in CBZ feels valued and supported. We appreciate the unique perspective and skills that individual staff members bring to the business. Thus, the Group continues to support all staff to reach their full potential that will enable them to serve our customers better. We have also invested significantly in human resources through a variety of training and development initiatives. This has also ensured that competent and professional individuals continue to serve our clientele at all times. As our clients are at the centre of everything we do, we believe it is only through adequate staff development that we will be able to render the kind of quality service and performance our clients deserve.

Appreciation

My appreciation goes to our valued clients for their continued support and for partnering with us in our joint successes. I would also like to thank the various Boards of the Group for their hard work, provision of direction and support to Management towards achieving our strategic goals.

To all staff members, I thank you for the hard work and commitment to the common objectives as evidenced by the good results. Let us remain focused and committed to our performance aspiration.

N. Nyemudzo
Group Chief Executive Officer
25 February 2015