CHAIRMAN’S STATEMENT
Operating Environment
The operating environment during the period under review remained relatively stable, although global headwinds continued to weigh on economic activity. Heightened US policy uncertainty, combined with ongoing geo-political and trade tensions, dampened global growth prospects.
In Zimbabwe, the economy is projected to grow by 6% in 2025, underpinned by anticipated strong performances in the agricultural and mining sectors. During the 2024/25 agriculture season, good performance has been recorded in wheat and maize crops, while tobacco output reached a historic high of over 300 million kilograms. In mining, gold output surged by 35.2% in the first half of 2025, rising to 20.10 tonnes from 14.87 tonnes during the same period in 2024.
The official exchange rate remained largely stable, depreciating by 4.3% from US$1: ZWG 25.7985 on 1 January 2025 to US$1: ZWG 26.9457 on 30 June 2025. This stability reflects the Reserve Bank of Zimbabwe’s (RBZ) tight monetary policy stance, with the bank policy rate maintained at 35% throughout the review period. Statutory reserve requirements also remained unchanged at 30% for demand and call deposits and 15% for savings and time deposits for both foreign and local currency deposits. While these measures supported currency stability, they also constrained credit growth, limiting banks’ lending capacity.
Inflationary pressures eased during the first half of the year. Annual weighted inflation fell from 42.7% in January 2025 to 27.1% in June 2025, with monthly weighted inflation averaging 2% over the same period. Stable macroeconomic conditions also encouraged greater use of the ZWG currency, with its share of National Payment System electronic transactions rising from 26% in April 2024 to over 40% in June 2025.
Group Performance
Despite the challenging environment, ZB Financial Holdings “the Group” operations remained profitable, posting a profit after tax (PAT) of ZWG 0.428 billion from the ZWG 0.192 billion restated profit, for the period ended 30 June 2024. 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 30 June 2025, all Group companies, with the exception of ZB Building Society, complied with the prescribed minimum capital requirements. The Group remains committed to its 2024 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 its banking operations.
Dividends
There was no dividend declared for the reporting period ended 30 June 2025.
Sustainability and Environmental, Social, and Governance (ESG) Reporting
The Group’s strategy and operations continue to be underpinned by sustainability principles. The Group is one of the leading financial institutions in Zimbabwe seeking sustainability certification through the Reserve Bank of Zimbabwe (RBZ)-led Sustainability Standards Certification Initiative (SSCI), to be awarded by the European Organisation for Sustainable Development (EOSD). Currently, ZBFH has submitted the SSCI project for EOSD review, and the iterative review process is in progress, with certification now being targeted for the second half of 2025. This is further explained in greater detail in the GCEO’s Statement. Tied to the sustainability initiative as given above, the Group has adopted Environmental, Social and Governance (ESG) Reporting, as per regulatory requirement.
Directorate
Mrs Emmah N Mungoni resigned from the ZB Financial Holdings Board on the 30th of June 2025. On behalf of the Board and management, I extend my gratitude for her contributions and appreciate her for her distinguished service to the Group as both Director and Chief Financial Officer. I wish her success in her future endeavours.
Mrs Letwin Mawire was appointed as Acting Chief Financial Officer with effect from 01 July 2025. We look forward to her invaluable contribution towards the Group’s continued success.
Mr. Peter M.V. Wood retired by rotation at the Annual General Meeting held on June 27, 2025, and, being eligible, did not offer himself for re-election. The Board, Management, and staff would like to thank Mr. Peter M.V. Wood for his dedicated service and commitment to ZB Financial Holdings Limited. The Board wishes him well for the future.
Outlook
In the outlook, the Zimbabwean economy is projected to record positive growth in 2026, driven primarily by a recovery in agricultural output following the El Niño-induced drought. Improved weather conditions—particularly the anticipated La Niña in the 2025/2026 summer cropping season—are expected to bolster crop yields, supporting both food security and export earnings. In the mining sector, performance is likely to be mixed. While gold production is set to benefit from sustained record-high global prices, other metals—especially Platinum Group Metals (PGMs)—may face subdued demand amid weaker global industrial activity. Other key sectors, including manufacturing, tourism, and services, are forecasted to post moderate growth, supported by a relatively stable macroeconomic environment. However, structural challenges such as foreign currency shortages, energy shortages, and infrastructure gaps will likely present downward risks to the expansion of the economy.
On the policy front, the Reserve Bank of Zimbabwe (RBZ) is expected to maintain a cautious stance, leaning towards tighter monetary policy to rein in inflation and stabilize the exchange rate. Fiscal policy is also expected to remain to be influenced by the need to engender currency and price level stability. Nevertheless, authorities will need to strike a delicate balance to avoid stifling private investment and economic growth – the policy framework should not adversely impact Government’s ability to comfortably meet obligations when they fall due, e.g. recurrent expenditures, and maturing Treasury Bills (TBs). Additionally, a critical development in the medium term will be the de-dollarization roadmap rollout, as part of the National Development Strategy 2 (NDS2) and the 5-year strategic plan (2026-2030).
The Group will continue to support Government towards Vision 2030, particularly through capacitating the productive sectors of the economy, as well as interventions in enhancing financial inclusion within the economy.
Conclusion
I extend my appreciation and gratitude to our valued customers and all other key stakeholders, without whom the Group would not have been able to sustain its operations. Furthermore, I remain grateful to Board colleagues, Management and Staff, whose collective contributions enabled the ZBFH Group to attain this performance for the half year period to 30 June 2025. Despite the challenges posed by the operating environment, our collective efforts and contributions have ensured that the Group remains strong.
Mrs A Makamure
Board Chairperson
20 August 2025
Related Download
ZBFH Unaudited Condensed Interim Financial Results for the half year ended 30 June 2025.pdf
