I commend First Capital’s strategic pivot toward increasing retail lending—it’s a remarkably swift and relatively low-risk approach for banks. Individuals have limited leverage in negotiating interest rates; essentially, the bank sets the terms, and borrowers accept them. In contrast, corporate lending carries greater exposure, as non-performing loans can escalate rapidly, requiring more intensive risk management.
On CBZ, I believe the market is currently undervaluing the company. Their ongoing restructuring efforts—evident in the recent workforce optimization—and evolving market strategy make the next 12 months especially compelling to observe. With its restructuring likely to enhance operational efficiency and strategic focus, coupled with its strong market share, I view CBZ as a strong buy.
Thanks, Zolani, good insight, especially on the leverage topic. I hadn't thought of that. CBZ could be undervalued for sure. Just hard to assess risk with ZWG numbers.
I believe First Capital is right on track... I believe buying their stock is really gonna pay-off to anyone even after a more than 100% rally... I mean the market they are serving is largely untouched, given very risky, but if done well and hedged, it'll also being juicy returns. I believe if possible they should also try and offer loans to medium sized businesses ... They would probably get more from that as well, those guys seemingly are in need of sensible partners to lend them @ great rates and banks ( despite their high lending interests in Zim) would still be better lenders compared to MFIs...
I haven't looked at their valuation in detail. Their market cap is about $114m which would mean their PE ratio is about 5 which is not bad. It suggests that there may still be some upside, although this depends on whether they can sustain their growth.
From a business resilience, profitability and flexibility I understand you saying, "the banking sector in Zimbabwe has arguably experienced the least amount of disruption compared to others" but still Really😂😂😂? As someone in the sector I'm offended... I just believe the sector, anywhere you go, because it's drived by money, it will go wherever money leads it! As a result you will find the banking sector always is to a great extent one of the leading industries in innovation, disruption and changes. We've just learnt to cope and understand whether it's a good or bad season, we just have to make money!
I commend First Capital’s strategic pivot toward increasing retail lending—it’s a remarkably swift and relatively low-risk approach for banks. Individuals have limited leverage in negotiating interest rates; essentially, the bank sets the terms, and borrowers accept them. In contrast, corporate lending carries greater exposure, as non-performing loans can escalate rapidly, requiring more intensive risk management.
On CBZ, I believe the market is currently undervaluing the company. Their ongoing restructuring efforts—evident in the recent workforce optimization—and evolving market strategy make the next 12 months especially compelling to observe. With its restructuring likely to enhance operational efficiency and strategic focus, coupled with its strong market share, I view CBZ as a strong buy.
Thanks, Zolani, good insight, especially on the leverage topic. I hadn't thought of that. CBZ could be undervalued for sure. Just hard to assess risk with ZWG numbers.
I believe First Capital is right on track... I believe buying their stock is really gonna pay-off to anyone even after a more than 100% rally... I mean the market they are serving is largely untouched, given very risky, but if done well and hedged, it'll also being juicy returns. I believe if possible they should also try and offer loans to medium sized businesses ... They would probably get more from that as well, those guys seemingly are in need of sensible partners to lend them @ great rates and banks ( despite their high lending interests in Zim) would still be better lenders compared to MFIs...
I haven't looked at their valuation in detail. Their market cap is about $114m which would mean their PE ratio is about 5 which is not bad. It suggests that there may still be some upside, although this depends on whether they can sustain their growth.
From a business resilience, profitability and flexibility I understand you saying, "the banking sector in Zimbabwe has arguably experienced the least amount of disruption compared to others" but still Really😂😂😂? As someone in the sector I'm offended... I just believe the sector, anywhere you go, because it's drived by money, it will go wherever money leads it! As a result you will find the banking sector always is to a great extent one of the leading industries in innovation, disruption and changes. We've just learnt to cope and understand whether it's a good or bad season, we just have to make money!