InnBucks posts robust H1 performance
BUSINESS REPORTER
InnBucks MicroBank Limited delivered a strong financial performance in the six months to December 31, 2025, posting a profit after tax of ZWG99.5m, a threefold increase from ZWG33m recorded in the comparable prior period.
The deposit-taking microfinance institution attributed the impressive growth to an expanding customer base and a significant scaling up of its lending and transactional operations.
Chief executive officer Baldwin Guchu said the strong out-turn reflects the bank’s growing footprint and enhanced operational capacity.
“The microbank posted a profit after tax of ZWG99.5m for the six months ended December 31, 2025, which is up three times from the previous half-year reporting period. This growth out-turn resulted from the overall increase in the scale of our operations, driving up lending and transactional income,” Guchu said.
He noted that interest income surged by 95%, underpinned by a 136% growth in gross loans and advances to ZWG1.9 billion.
Non-funded income also recorded exceptional growth, with fees and commission income rising threefold and trading income increasing 6.6 times from the previous period to reach ZWG176.3m and ZWG176.5m, respectively.
Guchu said the surge in transactional income demonstrates the MicroBank’s scalable digital infrastructure and its capacity to handle growing transaction volumes.
Customer deposits rose to ZWG1.7 bn during the period, further strengthening the bank’s earnings base. The growth in deposits helped lift net fees and commissions income by 200% and trading income by 564%.
On the balance sheet, InnBucks maintained a solid capital position. Core capital closed the half year at ZWG396.2m as at December 31, 2025, comfortably above the current minimum regulatory requirement of ZWG129.9m, providing a healthy margin of safety.
The MicroBank’s capital adequacy ratio stood at 16.4%, above the regulatory minimum threshold of 15%, while its liquid assets ratio closed at 57%, significantly higher than the 30% minimum requirement, underscoring ample capacity to underwrite additional business.
Looking ahead, InnBucks plans to complete the stabilisation of its new wallet platform, which management expects will offer customers enhanced flexibility and improved user experience.
“On the back of this, a pipeline of other products and services will also be rolled out. Expanding our partner and agency distribution network will be a key priority to ensure that our services are more accessible to our growing customer base. We will continue to explore strategic alliances to promote expansion, encourage innovation, and elevate the standard of service to our customers,” Guchu said.
He added that the MicroBank is strategically positioned to deepen its participation in both retail and business banking segments, leveraging digital platforms and expanded physical distribution channels, particularly in informal markets, to promote greater financial inclusion.
Going forward, InnBucks says it intends to build on its growth momentum, anchored on digitally led solutions, new segment-focused products, and enhanced access channels designed to broaden its reach across Zimbabwe’s evolving financial services landscape.
