Stanbic Bank Zimbabwe grew its after-tax profit by 26 percent to ZiG858,4 million in the six months to 30 June 2026, as stronger lending income and tighter cost discipline offset a decline in non-funded income.
The post-tax profit increased from ZiG682,2 million recorded during the corresponding period last year, while net interest income rose 33 percent to ZiG1,1 billion.
Stanbic’s expansion of its loan book was a major driver of the strong interest income performance.
Loans and advances rose 16 percent to ZiG15,3 billion by 30 June, from ZiG13,2 billion at the end of December.
“The 33 percent increase in net interest income was largely underpinned by the strong growth in interest earning assets,” chief executive Solomon Nyanhongo said.
He said strong foreign currency inflows had also helped underpin liquidity and confidence in the economy.
“Foreign currency inflows remained robust, supported by strong performance in mining, agriculture, and sustained diaspora remittances,” Nyanhongo said.
According to him, the inflows contributed to improved market liquidity and foreign exchange reserves, while also supporting business confidence.
Financial investments also climbed 22 percent, reaching ZiG1,1 billion compared with ZiG865 million six months earlier.
However, reduced bank charges and transaction fees weighed on the bank’s non-funded income, which fell 12 percent to ZiG1,3 billion from ZiG1,5 billion in the comparative period.
The banking group saw the decline following the implementation of the Reserve Bank of Zimbabwe’s revised bank charges directive on 1 April.
Lower tobacco prices also affected income from fees and commissions.
“Notwithstanding these changes, non-funded income continued to be supported by healthy transaction volumes across the Bank’s channels and the strength of its diversified product offering,” Nyanhongo said.
Cost containment provided further support, with operating expenses falling 13,6 percent to ZiG1,1 billion as the bank pursued cost optimisation and improved operational efficiency.
Deposits increased sharply, rising 35 percent to ZiG28,2 billion from ZiG20,9 billion at the end of 2025.
“This strong growth reflects the Bank’s success in deepening customer relationships, expanding its transactional banking franchise and attracting quality funding from both retail and corporate customers,” Nyanhongo said.
The bank nevertheless recorded a rise in expected credit loss allowances to ZiG71 million from ZiG43 million, mainly due to growth in lending assets and greater use of secured offshore credit lines.
Looking ahead, Stanbic warned that the macroeconomic stability seen in the first half could still come under pressure from fiscal slippages, external shocks and climate-related disasters.
The bank ended the period with qualifying core capital of ZiG4,5 billion, significantly above the regulatory minimum equivalent of US$30 million.