ZB Group Profits Rise in ZiG Era as Digital, ESG Strategies Take Shape

Audrey Galawu- Assistant Editor 

ZB Financial Holdings posted a solid after-tax profit of ZiG$264 billion for the full year ending December 31, 2024—up from a restated profit of ZiG$192 billion in 2023—despite operating in a volatile economic environment marked by exchange rate fluctuations, tight liquidity, and the effects of El Niño on agricultural output.

The group’s Chairman, Agnes Makamure, noted in her statement that while Zimbabwe’s new currency, the Zimbabwe Gold, introduced in April 2024, brought relative stability, challenges persisted.

“The latter part of the period under review has seen relative stability in local currency value and inflation rates. Nevertheless, liquidity in both local and foreign currency markets has remained limited,” she said.

ZBFH’s total income grew by 46% to ZiG$594 billion, driven largely by non-funded income from banking fees, commissions, and other income streams. Net interest income increased by 14% to ZiG$161 billion, supported by improved interest margins and a drop in loan impairment charges. Income from lending activities, net of recoveries, jumped 31% to ZiG$157 billion.

Group Chief Executive Officer Dr. Shepherd Fungura said, “We’ve delivered a resilient performance. Resultantly, income from lending activities, net of recoveries, rose by 31% from ZiG$120 billion in 2023 to ZiG$157 billion in 2024, aided by improved interest margins and bad debts recovered.”

The Group’s total assets increased 34% year-on-year, closing at ZiG$2.38 trillion. Customer deposits rose to ZiG$1.82 trillion, up from ZiG$1.3 trillion, while the liquidity coverage ratio remained comfortably above the 30% regulatory minimum throughout the year.

On the insurance front, ZB Life Assurance posted a profit of ZiG$13.5 billion, up from ZiG$8.5 billion in 2023. ZB Reinsurance, however, reported a reduced profit of ZiG$3.9 billion from ZiG$6.8 billion, due to a decrease in insurance service expenses.

Despite profitability across most subsidiaries, ZB Building Society posted a loss of ZiG$4.7 billion, leading the Group to initiate the surrender of its banking license to the Reserve Bank of Zimbabwe (RBZ) to address capital shortfalls. Makamure said the move was part of a broader strategy to consolidate banking operations and strengthen compliance.

The Board declared a final dividend of US$0.50 cents per share for the 2024 financial year.

ZBFH has also made notable strides in sustainability, innovation, and digital transformation. The Group implemented a new core banking system and launched its Innovation Hub, with further plans to roll out a Digital Wallet in 2025. It also progressed in acquiring certification under the RBZ-led Sustainability Standards Certification Initiative (SSCI).

“Our strategy is anchored in long-term sustainability. We continue to integrate ESG principles into our operations and products,” said Fungura. “We are committed to supporting Government priorities under the National Development Strategy 1 and the Sustainable Development Goals.”

The Group also restructured its investment arm, closing down ZB Capital in January 2024 and reviving its asset management business. It slightly increased its stake in Mashonaland Holdings from 27.8% to 30.03%, with Mash posting a profit of ZiG$4.8 billion and launching key developments including the Pomona Commercial Centre and Van Praagh Day Hospital.

Looking ahead, ZBFH is cautiously optimistic. Makamure noted, “The Group respectfully suggests that a balanced approach be considered, one that harmonizes stability with measures to stimulate economic growth.”

Fungura added, “With our cost optimization and sustainable revenue strategies, we believe we are well positioned to deliver positive results in the future. We remain committed to our mantra of creating happy people.”

As FY2025 marks the final year of the current strategic plan, the Group is now laying the groundwork for its next medium-term blueprint.

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