CHAIRMAN’S STATEMENT
Operating Environment:
The operating environment was characterized by exchange rate volatility, during the first quarter of the year, culminating to the introduction of the Zimbabwean Gold Currency (ZWG) on the 5th of April 2024. The new currency largely tamed the inflationary pressures in the country, save for the effects of the 44% devaluation of the ZWG currency against the United States Dollar (USD) during September 2024. As a result, the later 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. In addition, the effects of the El Nino weather patterns impacted agricultural output, which together with erratic energy supply made a challenging operating environment. All this combined, created a tough operating environment for the Group characterised by constrained revenue generation and limited growth opportunities.
Group Performance:
Despite the challenging environment, the Group’s operations remained profitable, posting a profit after tax (PAT) of ZWG1,167 billion from the ZWG 1,124 billion restated profit, in 2023. The Group’s profit performance is discussed in greater detail in the Group Chief Executive Officer’s report.
Capital Requirements:
The Group remains committed to maintaining robust capital adequacy. As at 31 December 2024, all Group companies, with the exception of ZB Building Society, were in compliance with the prescribed minimum capital requirements. During the year, the Group made a resolution to surrender the Building Society’s banking operating licence to Reserve Bank of Zimbabwe (RBZ) in a bid to address the capital shortfall at the Building Society. The Reserve Bank of Zimbabwe (RBZ) has responded with conditions that need to be satisfied before the surrendering of the ZB Building Society’s banking licence. These include, but are not limited to certain information requests, ensuring that the deposits are handled in compliance with the Consumer Protection Framework No.1-2017/BSD. The Group is in the process of working towards fulfilling these conditions as part of the efforts to consolidate the Group’s banking operations.
Dividends:
The board has declared a final dividend of USD 0.57cents per share for the year ended 31 December 2024. A separate dividend notice will be published to this effect.
Sustainability and Environmental, Social, and Governance (ESG) Reporting
ZB Financial Holdings recognizes the importance of sustainable business practices. The Group’s strategic drive on sustainability is underpinned by integrating environmental, social and governance into economic decisions, operations, strategy, products and services, and practices. The Group will leverage off certification through the Reserve Bank of Zimbabwe (RBZ)-led Sustainability Standards Certification Initiative (SSCI). The group has consequently made progress in its adoption of ESG reporting, and is working to integrate ESG principles into its core business operations.
Directorate:
Mr Luxon Zembe resigned from the ZB Financial Holdings Board on the 12th of April 2024 after having stepped down as the Board Chairman on 20 March 2024. On behalf of the Board and management, I extend my gratitude for his contributions and appreciation to him for his distinguished service to the Group as both Director and Chairman. I wish him success in his future endeavours.
I, Agnes Makamure was appointed as Acting ZBFH Chairman with effect from the 20th of March 2024 and subsequently as the substantive ZBFH Chairman with effect from 27 June 2024. I would like to acknowledge the trust and confidence that has been placed in me, and I am committed to contribute to the organization’s continued excellence.
Mr Shepherd T Chimutanda was appointed to ZB Financial Holdings Board as an Independent Non-Executive Director with effect from 8 November 2024. I look forward to his invaluable contribution towards the Group’s continued success.
Outlook:
Looking ahead, the tight monetary policy is expected to remain in place to stabilize exchange rates and control inflation. On the back of an improved 2024/2025 rainy season, the economy is expected to benefit from a better agricultural performance buoyed by improved rainfall.
Notwithstanding, the efforts of authorities to maintain macroeconomic stability through prudent monetary policy, the Group respectfully suggest that a balanced approach be considered, one that harmonizes stability with measures to stimulate economic growth.
The Group encourages policymakers to explore initiatives that foster a conducive business environment, promote investment and support the overall development of the economy.
The Group is confident that the implementation of its sustainable revenue generation and cost optimisation strategies will sustain the Group’s performance. These include, ongoing improvement with respect to the efficiency of front-end systems, brand equity promotion and continuation with the Group’s mantra of creating happy people.
Conclusion:
I would like to express my sincere gratitude to the Board of Directors, management, staff, and our valued customers for their continued support, without whom the Group would not have been able to achieve the reported profitability in 2024 and sustain its operations into the future. Notwistanding the difficult environment, I believe the collective efforts of all stakeholders will enable the Group to continue delivering sustainable and positive results in the future.
A. Makamure
(Chairman)
31 March 2025
ZBFH Audited Financial Results for the year ended 31 December 2024.pdf
