Liquidity squeeze weighs on ZB lending business
CLOUDINE MATOLA
Liquidity constraints and the subdued performance of Treasury Bills weighed heavily on ZB Financial Holdings (ZBFH)’ lending operations during the quarter to March 31, 2026, Business Times can report.
The group said constrained liquidity within its banking operations curtailed asset creation, resulting in weaker income from its core lending business during the period under review.
Group general counsel and board secretary Tinashe Masiiwa said the prevailing tight liquidity conditions continued to exert pressure on the institution’s traditional revenue streams.
“Net income from lending activities declined during the period, primarily due to reduced asset creation arising from liquidity constraints within the group’s banking operations. The decrease was further attributable to the maturity and reissuance of Treasury Bills at a 0% coupon rate,” Masiiwa said.
The monetary authorities, in the 2026 Monetary Policy Statement, indicated that they would maintain a tight monetary policy stance aimed at anchoring inflation expectations and preserving currency stability.
Despite the difficult operating environment, ZB recorded strong growth in its property and insurance divisions, which emerged as key contributors to the group’s performance.
Property income rose 27% year-on-year from ZWG46.02 million in 2025 to ZWG58.48 million in 2026, driven by increased rental income and growth in property management services.
“The insurance cluster delivered a steady performance during the period with a 21% growth from ZWG33.84 million in 2025 to ZWG41.06 million in 2026 in insurance revenue, underpinned by consistent premium inflows and disciplined underwriting. The segment continues to play a strategic role in diversifying the Group’s revenue streams and enhancing its earnings stability,” Masiiwa said.
Commissions and fees also posted solid growth, increasing 7% to ZWG378.22m from ZWG365.86m, supported by higher transaction volumes across the group’s operations.
ZB said its capital position remained strong and sufficient to support ongoing operations and future expansion plans.
“The group maintained strong capital and liquidity positions throughout the period, with all business units fully compliant with minimum regulatory requirements. The capital base remains adequate to support current operations and planned growth initiatives,” he said.
Looking ahead, the group said it would continue pursuing sustainable revenue generation strategies, broadening its investment portfolio and strengthening cost management initiatives as it adapts to the evolving macroeconomic and regulatory landscape while seeking to enhance shareholder value.
