CBZ Holdings Limited (CBZ) reported a sharp rise in profits for the year to 31 December 2025, riding Zimbabwe’s economic recovery while navigating tight liquidity and policy shifts that continue to shape the operating environment.
The financial services group posted a ZiG1.44 billion profit after tax during the period under review, a significant jump from ZWG168.05 million recorded prior year, underpinned by strong income growth and improved credit quality.
In a statement accompanying the institution’s financials, group chairman Luckson Zembe said the performance reflected “the disciplined execution of its strategic priorities, anchored on sound governance systems, robust financial stewardship, operational efficiency, and customer-centric service delivery”.
The group’s total income rose to ZiG5.73 billion from ZiG4.11 billion, driven by both funded and non-funded income streams, with the latter remaining the dominant contributor.
Net interest income increased to ZiG1.89 billion, supported by growth in the loan book and improved asset yields.
Non-funded income climbed to ZiG3.86 billion, reflecting increased transaction volumes across digital platforms and expansion in fee-based services, highlighting the growing role of technology-driven banking in sustaining revenue growth.
The group’s balance sheet also strengthened, with total assets rising to ZiG41.15 billion, while customer deposits increased to ZiG27.76 billion, signalling continued confidence in the institution despite a challenging macroeconomic backdrop.
Loans and advances grew to ZiG10.19 billion, indicating sustained support for productive sectors.
Credit quality improved markedly, with expected credit loss expenses falling to ZiG20.97 million from ZiG800.65 million, reflecting stronger risk management and a healthier loan portfolio.
CBZ said the operating environment in 2025 was shaped by a recovering domestic economy, which grew by an estimated 6.6 percent, supported by agriculture, mining and services.
Inflation eased significantly during the year, while foreign exchange markets remained relatively stable under tight monetary policy, although the US dollar continued to dominate transactions.
Foreign currency deposits accounted for approximately 82 percent of broad money supply, underscoring the persistence of dollarisation, even as authorities push for greater use of the local currency.
Looking ahead, the group struck a cautiously optimistic tone, noting that the economy is projected to grow by around five percent in 2026, supported by agriculture, mineral output and continued macroeconomic stability.
However, it warned of external risks, particularly “imported economic effects of the instabilities within the Gulf region and parts of Europe”, which could weigh on performance.
The board proposed a US$10 million final dividend, bringing total dividends for the year to US$12.5 million, as the group positions itself to leverage its capital strength, expand partnerships and mobilise funding to support key sectors of the economy. – TML