ZB Financial Holdings (ZBFH) reported a solid increase in total income for the year ended 31 December 2025, supported largely by growth in its main business segments, even as overall profitability came under pressure.
Total income rose by 25 percent to ZiG3,89 billion, up from ZiG3,11 billion recorded in the previous year.
The improvement reflects a broader shift within the financial services sector, where institutions are increasingly relying on stable, core revenue streams rather than once-dominant revaluation gains, amid a more stable macroeconomic environment.
The financial institution’s growth was primarily driven by commission income, lending activities and insurance operations.
Commission income contributed 47 percent of total revenue, while lending accounted for 38 percent, underscoring the group’s continued emphasis on transactional services and credit-based income.
ZBFH chairperson, Agnes Makamure, highlighted the improvement in underlying earnings, noting a turnaround from losses recorded in the prior year.
“…maintainable earnings (excluding unrealised exchange gains and fair values) improved from a loss of ZiG292 million in 2024 to a positive position of ZiG73 million as the group placed more reliance on revenues from its core business,” she said in a statement accompanying the group’s financial results.
ZBFH’s insurance segment delivered notable growth, with revenue increasing by 130 percent to ZiG976,45 million from ZiG424,30 million.
The performance was attributed to disciplined underwriting, broader product offerings and expansion into new markets, reflecting progress in diversifying income sources beyond traditional banking.
Despite the strong revenue growth, operating expenses rose significantly by 61 percent to ZiG2,92 billion, compared to ZiG1,81 billion in the previous year.
The surge was largely linked to one-off costs associated with restructuring initiatives.
As a result, profit after tax declined by 35 percent to ZiG679 million, down from ZiG1,04 billion recorded in 2024.
The decline in earnings was also influenced by reduced unrealised exchange gains following greater exchange rate stability during the reporting period.
Key performance indicators showed return on equity at 10 percent, while adjusted return improved to 1,05 percent from a negative six percent in the prior year.
Total assets grew by 13 percent to ZiG16,08 billion, supported by increases in cash holdings, treasury investments and property valuations.
All subsidiaries remained compliant with minimum capital requirements as at year-end.
During the period, the group resolved to surrender the Building Society’s banking licence to the central bank, as part of efforts to optimise capital allocation and address capital adequacy challenges within that unit.
The regulator approved the move, cancelling the licence on December 19, 2025.
In the outlook, the group anticipates improved performance, buoyed by a US$12 million offshore credit facility secured from Shelter Afrique.
The funding is expected to support housing and infrastructure projects, contributing to future asset growth and revenue expansion.
However, management cautioned that both domestic and global risks could weigh on economic prospects.
“Domestic structural constraints, including foreign currency shortages, energy supply challenges, and infrastructure gaps, may weigh on economic expansion. These risks are compounded by global headwinds, notably geopolitical tensions and heightened trade uncertainty,” Makamure said.
Separately, ZB Bank is seeking to leverage its recently acquired Sustainable Standards Certification Initiative (SSCI) accreditation to access climate-related financing.
“We also want to make sure that we use the SSCI accreditation as a launch pad to the Green Climate Fund accreditation, which we are also working on. So, we are green, but we’re also wanting to make sure that we monetise these positive developments,” ZB Bank chief executive, Elisha Chibvuri, said.
The SSCI certification, awarded by the European Organisation for Sustainable Development in September 2025, made ZB Bank the first institution in Zimbabwe to receive the recognition.
The Green Climate Fund is a global financing mechanism supporting developing countries in climate adaptation and mitigation efforts, including projects aimed at building resilience and promoting low-emission development. – TML