CBZ warns of profit hit from reduced bank charges
LIVINGSTONE MARUFU
Publicly traded financial services group, CBZ Holdings Limited, says the downward review of bank charges could significantly affect profitability across the banking sector, as most lenders depend heavily on fees and commissions for revenue generation.
In February this year, the Reserve Bank of Zimbabwe (RBZ), through its Monetary Policy Statement, directed banks to reduce charges in a move aimed at enhancing affordability and promoting financial inclusion.
In a trading update for the quarter to March 31, 2026, group chief governance officer Rumbidzayi Jakanani warned that while the policy supports increased formal banking activity, it could negatively affect non-interest income streams.
“While supportive of increased formal banking activity, the measure presents implications for banks’ non-interest income streams, particularly given the significant contribution of fees and commissions to sector income in 2025,” Jakanani said.
During the period under review, the group recorded profit after tax of ZWG361.34m, down from ZWG537.53m in the corresponding period last year, on total income of ZWG1.33bn compared to ZWG1.41bn previously.
The performance reflected strong underlying earnings, with funded income increasing to ZWG658.48m from ZWG627.63m, driven by growth in loans and advances.
Non-funded income moderated to ZWG878.09m from ZWG938.03m, largely due to the non-recurrence of once-off treasury bill gains recognised in the prior year.
Core revenue streams remained resilient, with commission and fee income rising by 4.9% to ZWG524.17m from ZWG499.58m, supported by continued momentum in digital channels and a stable transactional deposit base.
The group’s asset base closed the period at ZWG40.81bn, compared to ZWG41.15bn recorded a year earlier, underpinned by customer deposits of ZWG27.83bn against ZWG27.76bn previously.
Loans and advances to customers increased marginally to ZWG10.26bn from ZWG10.19bn.
CBZ said its balance sheet remains liquid, well-capitalised and resilient, sustaining the group’s strong market position.
The group said its underlying operational performance remains sound, supported by diversified income streams, disciplined execution and ongoing capitalisation initiatives across subsidiaries, positioning the business for sustainable growth.
CBZ remains on course to achieve its revenue and profitability targets for the financial year, supported by continued business momentum and focused execution of strategic priorities.
Jakanani said all business units remain adequately capitalised to support operations and strategic growth, with all regulated entities compliant with minimum capital requirements.
The group commenced subsidiary recapitalisation in the previous period and continues to deploy capital in a targeted manner to support identified growth initiatives.
The directors have assessed the group’s ability to continue as a going concern and are satisfied that adequate resources are in place to sustain operations in the foreseeable future.
The lender continues to generate positive cash flows and maintains strong capital and liquidity buffers, underpinned by a diversified income base and sound risk management practices.
Looking ahead, CBZ said the operating environment is expected to remain dynamic, with global geopolitical developments and commodity price volatility continuing to pose downside risks to growth and cost stability.
Jakanani said the group is well-positioned to sustain performance and drive growth, underpinned by strong capitalisation, a diversified business portfolio and a disciplined risk management framework.
Going forward, the group will focus on optimising balance sheet utilisation, strengthening liquidity and deepening customer-centric solutions while leveraging strategic partnerships to unlock new growth opportunities.
“CBZ remains confident in its ability to navigate prevailing uncertainties and deliver sustainable value to its stakeholders,” she said.
