ZB engages RBZ on building society licence surrender
LIVINGSTONE MARUFU
Zimbabwe Stock Exchange listed financial services group, ZB Financial Holdings Limited (ZBFHL), is in discussions with the Reserve Bank of Zimbabwe (RBZ) with the view to surrender its building society licence as part of efforts to consolidate its banking operations and address the capital shortfall at its mortgage lending subsidiary.
ZBFHL had initially submitted an application to the RBZ, but the central bank responded with new preconditions that must be met before approval can be granted.
ZBFHL Board Chairperson Agnes Makamure confirmed that the group is not capitalising the building society following engagements with the RBZ.
“During the year, the group resolved to surrender the ZB Building Society’s banking licence to the RBZ in a bid to address the capital shortfall at the institution. The RBZ has outlined conditions that must be satisfied before the licence surrender can proceed. These include, but are not limited to, specific information requests and ensuring that depositors’ interests are protected in compliance with the Consumer Protection Framework No.1-2017/BSD,” Makamure stated.
She added that ZBFHL is actively working towards meeting these conditions as part of its broader strategy to consolidate banking operations.
ZBFHL’s total income grew by 38% to ZWG3.21bn in 2024, up from ZWG2.308bn in 2023. This performance was driven by a significant increase in non-funded income, primarily from commissions, fees, and other revenue streams, while funded income also recorded steady growth.
Despite constrained growth in loans and advances, net interest income rose by 14%, reaching ZWG0.475bn in 2024 from ZWG0.417bn in 2023.
The group remained profitable despite economic challenges, posting a profit after tax of ZWG1.167bn in 2024, compared to a restated ZWG1.124bn in 2023.
Banking commissions and fees surged by 76% to ZWG1.158bn as of December 31, 2024, driven by increased electronic banking transactions amid the group’s ongoing digital transformation efforts.
Operating costs rose by 8% to ZWG1.785bn in 2024 from ZWG1.626bn in 2023.
Total assets grew by an impressive 104% to ZWG14.383bn as of December 31, 2024, from ZWG7.062bn a year earlier. This asset growth outpaced the average blended inflation rate of 3.7% over the same period.
Deposits and related funding balances closed the year at ZWG5.483bn, reflecting a 120% increase from ZWG2.488bn in 2023. The surge was largely supported by increased US-dollar deposits across all sectors.
The group restructured its investment cluster, closing down ZB Capital operations as of January 1, 2025, while simultaneously resuscitating its asset management operations from the same date.
The board declared a final dividend of USD 0.57 cents per share for the year ended December 31, 2024.
Looking ahead, ZBFHL is urging policymakers to implement measures that foster a conducive business environment, attract investment, and support economic growth.
The group remains confident that its sustainable revenue generation and cost-optimization strategies will sustain strong performance.
This includes ongoing improvements in front-end system efficiencies, brand equity enhancement, and a commitment to its corporate mantra of “creating happy people.”
