CBZ Holdings posted a 33 percent decline in first-quarter profit after tax to ZWG361.3 million for the period ended March 31, 2026, weighed down by the absence of significant treasury bill gains that boosted earnings in the corresponding period last year.
The diversified financial services group reported total income of ZWG1.33 billion, down from ZWG1.41 billion recorded during the same period in 2025, despite growth in lending activity and continued momentum in digital banking services.
According to the group's latest trading update, funded income rose to ZWG658.5 million as the loan book expanded, while commission and fee income increased by 4.9 percent to ZWG524.2 million, supported by growing usage of digital platforms.
However, non-funded income moderated to ZWG878.1 million due to the non-recurrence of substantial one-off treasury bill gains recognised in the first quarter of 2025.
Despite the earnings decline, CBZ maintained a strong balance sheet, with customer deposits increasing marginally to ZWG27.83 billion from ZWG27.76 billion a year earlier. Loans and advances to customers also grew to ZWG10.26 billion from ZWG10.19 billion.
Total assets stood at ZWG40.81 billion compared to ZWG41.15 billion recorded in the prior year.
The group said its financial position remained sound, supported by strong liquidity and adequate capital buffers.
"Management confirms the balance sheet remains liquid, well-capitalised, and robust, sustaining the Group's strong market position," the company said.
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CBZ said all business units remained adequately capitalised and compliant with minimum regulatory requirements, while ongoing recapitalisation initiatives were expected to strengthen the group's long-term growth prospects.
The banking group acknowledged that recent regulatory changes could place pressure on non-interest income streams after the Reserve Bank of Zimbabwe reviewed bank charges downward in a move aimed at promoting financial inclusion.
At the same time, the operating environment remains challenging, with rising fuel and energy costs increasing pressure on businesses across the economy.
CBZ said global geopolitical developments, particularly tensions in the Middle East, had contributed to higher energy prices and tighter financial conditions.
"Management described the operating environment as dynamic, shaped by global geopolitical risks and a relatively stable domestic economy," the company noted.
The group said a strong agricultural season had helped offset some of the economic pressures, contributing to overall market stability.
CBZ expressed confidence in its ability to navigate prevailing uncertainties and sustain growth.
"The Group is well-positioned to sustain performance, with a strategic focus on optimising balance sheet utilisation, strengthening liquidity, and deepening customer-centric solutions," the company said.
Management added that disciplined execution, diversified income streams and continued capitalisation efforts would remain central to its strategy as it seeks to deliver sustainable value to shareholders and customers.
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