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ZB strengthens capital position, plans banking consolidation

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ZB Financial Holdings Limited (ZBFH) says Zimbabwe’s growing macroeconomic stability is opening new avenues for growth across its business operations, while also supporting broader economic recovery.

This comes as the Zimbabwe Gold (ZiG) exchange rate has averaged 26,7 per US$1 over the year, compared to ZiG15,35 at the end of September 30, 2024.

In its trading update for the year to September 30, 2025, the group said the prevailing stability — characterised by improved monetary discipline and moderating inflation — had underpinned solid financial performance across its core business segments.

According to ZBFH, this has led to significant movements in the statement of profit or loss and other comprehensive income lines.

ZBFH’s revenue grew by 75 percent year-on-year to ZiG2,86 billion, up from ZiG1.64 billion in the same period last year.

Profit after tax rose by 41 percent to ZiG0.61 billion, compared to ZiG0.43 billion in 2024.

The group’s total assets also increased by 24 percent to ZiG17.77 billion, from ZiG14.38 billion, largely driven by a 56 percent growth in cash and short-term funds since December 2024.

“The relatively stable local environment offers new growth opportunities for the group and supports broader economic expansion. This has resulted in significant movements in the Statement of Profit or Loss and Other Comprehensive Income,” said ZBFH general counsel, Mr Tinashe Masiiwa, in a statement accompanying the update.

The group attributed part of its positive performance to improved monetary stability.

“Monetary stability is strengthening, underpinned by the relatively stable local currency. This has contributed to a notable decline in inflation from the peaks of 2024, with year-end inflation projected to be around 30 percent,” the group noted.

Despite the overall strong performance, ZBFH reported an 11 percent decline in mortgages and other advances, reflecting subdued demand in the property sector.

However, customer deposits and other account balances rose by 34 percent, supported by customer retention initiatives and the rollout of innovative, client-focused products.

ZBFH said it expects to underwrite more business from recently secured credit lines, a development anticipated to expand its loan book in the coming quarters.

The group’s capital position strengthened by 14 percent during the first nine months of 2025, with all business units meeting minimum regulatory capital requirements — except for the ZB Building Society.

Management indicated plans to consolidate banking operations under a single licence to improve efficiency and capital deployment.

Despite the improved financial performance, ZBFH declared no dividend for the third quarter of 2025, opting to retain earnings to support ongoing growth initiatives and balance sheet consolidation. – Herald

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