ZB Financial Holdings (ZBFH) plans to step up lending in the second half of the year after an expansion of its balance sheet strengthened its ability to originate quality assets.
The group’s total assets increased by 21,5 percent to ZiG19,5 billion by June 30, 2026, from ZiG16,1 billion at the end of December last year.
The growth was mainly driven by an increase in mortgages, other advances and investments in financial assets.
“Going forward to year end, the group is focusing on increasing the loans… through creation of quality assets,” ZBFH group chief executive Shepherd Fungura said in a statement accompanying the half-year financial results.
The planned increase in lending follows a slight decline in income from lending activities, which fell to ZiG381 million from ZiG406 million during the comparable period in 2025.
Fungura said the lower lending income also affected net interest income, which declined to ZiG305 million from ZiG477 million.
This was due “to subdued lending and financial assets which were restructured at zero coupon value during the period under review,” he said.
ZB Bank, the group’s banking subsidiary, secured a US$12 million credit facility from Shelter Afrique Development Bank in March to support housing and infrastructure development in Zimbabwe.
The group also recorded a significant improvement in loan impairment charges, net of recoveries. The position moved from a ZiG70 million charge in the prior-year period to a ZiG76 million credit during the six months under review.
ZBFH attributed the improvement to impairment reversals following the full repayment of matured financial assets.
The group’s funding base also strengthened, with deposits and other related funding balances rising to ZiG8,92 billion from ZiG6,57 billion at December 31, 2025.
“The growth was supported by an increase in USD deposits across all sectors,” Fungura said.
Banking commissions and fees increased to ZiG924 million from ZiG905 million, largely because of higher transaction volumes from new customers using the group’s digital banking platforms.
The insurance operations also performed better during the period. The insurance service result rose to ZiG111 million from ZiG66 million, while insurance service revenue increased to ZiG541 million from ZiG423 million.
“This performance was driven by increased new business and share participation recorded by Reinsurance and Life Assurance businesses,” Fungura said.
Operating expenses edged down to ZiG1,359 billion from ZiG1,372 billion as the group continued with measures aimed at controlling costs.
ZBFH said greater use of automated processes across the business should generate additional savings.
Despite the gains recorded in lending-related impairment charges, fees and insurance, profit after tax fell to ZiG248 million from ZiG428 million. The decline was mainly attributed to lower exchange gains.