NMBZ Holdings is ramping up lending activities as it seeks to grow interest income and reduce reliance on transaction-based revenue following recent regulatory changes that slashed banking fees across the sector.
The move comes after the Reserve Bank of Zimbabwe (RBZ) introduced measures aimed at promoting financial inclusion and encouraging the use of formal banking channels.
The central bank capped cash withdrawal charges at two percent, down from an industry average of about three percent, and limited point-of-sale transaction fees to 1,5 percent.
In its trading update for the quarter ended 31 March 2026, NMBZ said the new fee structure is expected to place additional pressure on non-interest income, prompting a greater focus on lending growth and operational efficiency.
“In response to the evolving fee-income environment, the group is placing increased focus on core lending, with particular emphasis on retail, SME and productive-sector lending,” company secretary Violet Mutandwa said.
Mutandwa said the group intends to draw on the experience of EFC Zambia, the microfinance institution in which NMBZ recently acquired a controlling stake.
“The group expects to leverage the EFC Zambia model, especially its MSME lending capability, through cross-border skills transfer and adaptation to the local market,” she said.
Concerns over the impact of reduced banking fees have been echoed across the sector.
Recently, CBZ Holdings indicated that lower transaction charges could affect earnings growth for banks during the current financial year.
To support its lending ambitions, NMBZ has secured more than US$185 million in credit lines and is in the process of finalising a further US$70 million in facilities. The additional funding is expected to strengthen the group’s capacity to extend credit while helping offset pressure on fee-based income.
The bank delivered strong financial results during the first quarter, with operating income rising 59 percent to US$24,2 million from US$15,2 million recorded in the same period last year.
Growth was driven by higher net interest income, resilient fee and commission earnings and the contribution from EFC Zambia, which was consolidated into the group’s results for the first time.
EFC Zambia generated US$1,8 million in operating income during the quarter, accounting for approximately 7,4 percent of total operating income.
Operating expenses increased by 17,5 percent compared to the prior year, although the growth in costs remained well below the increase in income, reflecting continued cost-management efforts.
Profit after tax surged to US$8,34 million, compared to US$2,52 million achieved during the corresponding period in 2025.
“The current period includes a non-recurring gain of US$3,8 million arising from the consolidation of EFC Zambia. Excluding this item, the group’s underlying performance was broadly in line with expectations,” Mutandwa said.
The group’s balance sheet also strengthened during the quarter. Total assets increased 15 percent to US$390,8 million from US$340,6 million at the end of December 2025.
The growth was largely driven by expansion in the loan book and the inclusion of EFC Zambia’s assets following the acquisition.
Net loans and advances rose 27 percent to US$198,2 million from US$155,6 million, while customer deposits climbed 19 percent to US$154,6 million from US$129,7 million.