Zimbabwe Stock Exchange-listed financial services group CBZ Holdings Limited recorded a strong earnings rebound in 2025, powered by rapid growth in digital transactions and fee-based income as the institution continues shifting away from traditional lending amid tight liquidity conditions.
The group posted profit after tax of ZWG1.44 billion for the year ended December 31, 2025, a sharp increase from ZWG168.05 million recorded in the prior year, with non-funded income emerging as the dominant contributor to earnings.
Group chairman Luxon Zembe said the results demonstrated the resilience of the group’s diversified business model despite a challenging operating environment.
“The group delivered a strong financial performance for the year ended December 31, 2025 despite operating in a dynamic economic environment characterised by tight liquidity conditions and ongoing policy interventions,” Zembe said.
Non-funded income — comprising transaction fees, commissions and digital banking revenues — rose to ZWG3.86 billion from ZWG2.77 billion, overtaking interest income as the primary earnings driver. The growth was supported by increased uptake of digital platforms, reflecting changing customer preferences toward electronic banking channels.
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Total income increased to ZWG5.73 billion from ZWG4.11 billion, while net interest income grew to ZWG1.89 billion from ZWG1.38 billion, aided by expansion of the loan book and improved asset yields.
Market analysts say the rising contribution of fee income highlights how banks are adapting to constrained lending conditions by strengthening digital ecosystems and diversifying revenue streams.
Credit quality also improved markedly during the period, with Expected Credit Loss expenses declining sharply to ZWG20.97 million from ZWG800.65 million, signalling tighter risk management and stronger asset performance.
The group’s balance sheet expanded during the year, with total assets rising to ZWG34.42 billion, while customer deposits grew to ZWG27.76 billion from ZWG21.59 billion, indicating sustained depositor confidence despite macroeconomic uncertainty.
Loans and advances stood at ZWG10.19 billion, reflecting continued support to productive sectors of the economy, albeit under cautious lending conditions.
Zembe warned that global geopolitical tensions and regional instability could still weigh on domestic markets but said the group would rely on strong capitalisation and strategic partnerships to sustain growth.
“Our strategy is centred on utilising and enhancing our capital strength, optimising funding structures, and entrenching business agility to support sustainable growth,” he said.
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