Introduction
Dear Stakeholder, I am pleased to present an update on the performance of ZB Financial Holdings Limited and its subsidiaries for the period ended 30 September 2025.
Operating Environment
The global environment in the third quarter of 2025 remained volatile, shaped by rising trade-protectionist policies, a slowdown in international trade, persistent policy uncertainty and intensified geopolitical tensions. These factors continued to present both risks and opportunities for emerging economies, necessitating careful monitoring.
Domestically, conditions were comparatively stable. The Reserve Bank of Zimbabwe (RBZ) maintained a tight monetary policy and active liquidity management, keeping the policy rate at 35% throughout the period. Consequently, the Zimbabwe dollar appreciated by 1.1%, moving from US$1: ZWG26.9502 on 1 July 2025 to US$1: ZWG26.6439 on 30 September 2025. Inflationary pressures also eased, with annual weighted inflation declining from 28.1% in July 2025 to 25.1% in September 2025, while monthly weighted inflation averaged 0.2% over the same period.
This relatively stable local environment offers new growth opportunities for the Group and supports broader economic expansion. At the same time, the Group remains focused on proactive risk-management measures to safeguard long-term shareholder value amid ongoing global uncertainties.
Performance Outturn
Movement in Exchange rates
The average exchange rate moved from USD1: ZWG15.35 for the period ended 30 September 2024 to USD1: ZWG26.66 for the period under review. Therefore, this has resulted in significant movements in the Statement of Profit or Loss and Other Comprehensive Income lines with additional specific issues highlighted in this report.
The Group’s Profit After Tax for the period ended 30 September 2025 improved by 41% from the same period prior year. This growth was due to the increase in Total Income underpinned on the following:
Net Income from lending Activities
The Net Income from lending Activities contributed a marginal real growth amid tight liquidity pressures. The Group has secured new lines of credit which has increased the lending capacity and will improve the Net Interest Income line in the last quarter of the year and beyond.
Non-Funded Income
The Group recorded Non funded income of ZWG2.12bn (2024: ZWG1.43bn). This growth was primarily driven by the success of our digital channels and the rest of our service delivery ecosystem which contributed 62% of our total Commissions and Fees income. The Group remains committed to creating happy people through coming up with financial solutions that satisfy the evolving needs of our clients and markets.
Property Income also grew by 16% from prior year, primarily due to the contributions from Rental Income and Property management services. Exchange gains also contributed 27% of the Non funded income emanating from the group’s net exposure to currencies other than the USD (functional currency).
Operating Expenses
The Cost to Income ratio for the period ended 30 September 2025 was 73% (2024: 64%). While there were additional once off costs incurred during the year, the Group remains committed to maintaining cost discipline measures to contain the operating expenses to sustainable levels.
Statement of Financial Position
The Group reported a Total Assets balance of ZWG17.77bn (2024: ZWG14.38bn) mainly due to the Cash and Short-term funds which grew by 56% from December 2024 to date. A decline of 11% was recorded on the Mortgages and other Advances. However, the Group is expecting to underwrite more business from the newly issued credit lines which is expected to grow the loan book henceforth.
On the other hand, our customer base continues to grow with a Deposits and other Accounts balance growing by 34%. This was primarily driven by effective customer retention through proffering customer centric products.
In overall, the group reported a growth of 14% on the capital position in the first nine months of the year driven by the period’s performance.
Future Capital Requirements
The Group’s capital and liquidity levels remained strong with all business units being compliant with minimum regulatory capital requirements apart from ZB Building Society. The Group expects to consolidate its banking operations into one banking license in the near future.
Sustainability Certification
One of our subsidiaries, ZB Bank Limited “The Bank” received the Sustainability Standards Certification Initiative (SSCI) Certification from the European Organisation for Sustainable Development (EOSD) in collaboration with the Reserve Bank of Zimbabwe (RBZ). The Bank attained this certification with a Level 3 rating making it the first bank in Zimbabwe to achieve this global recognition.
Dividend
No dividend has been declared for Q3 2025.
Outlook
Zimbabwe’s economy is poised for a robust recovery in 2025, with growth projected at 6%. This upturn is primarily fuelled by a rebound in the agricultural sector after a severe drought, complemented by strong performances in mining and manufacturing. A significant expansion in sustainable energy, particularly solar power, is further bolstering this positive trajectory.
Monetary stability is strengthening, underpinned by the relatively stable local currency. This has contributed to a notable decline in inflation from the peaks of 2024, with year-end inflation projected to be around 30%. The Reserve Bank of Zimbabwe (RBZ), encouraged by this progress, has outlined a path to restore a mono-currency system by 2030 and is expected to continue policies that foster greater use of the local currency.
However, this optimistic outlook is tempered by persistent risks. Key challenges include vulnerability to global commodity price swings, infrastructural deficits, and the need for deeper structural reforms. Sustaining this growth will require unwavering fiscal discipline, policy consistency, and successful efforts to formalise the large informal sector.
The Group remains committed to its digitalisation & transformation sprints, providing value added financial solutions, capital preservation and effective cost management.
By order of the Board
T.F.A. MASIIWA
General Counsel
10 November 2025
