ZB posts solid profit amid tough economic conditions
STAFF WRITER
Financial services group ZB Financial Holdings has delivered a strong set of financial results for the half-year ended June 30, 2025, despite operating under a challenging economic environment.
Total income surged 77% to ZiG1.908bn, up from ZiG1.075bn recorded in the same period last year. The increase was largely driven by non-funded income, other operating income (mainly rental income), and net interest income, which contributed 47%, 34%, and 21% respectively.
Operating expenses rose 80% to ZiG1.371bn, from ZiG760.778m, mainly due to one-time restructuring costs. However, the group said its ongoing robotics and automation initiatives are expected to improve efficiency and cut costs going forward.
As a result, the cost-to-income ratio closed at 72%, slightly up from 71% in the prior year period.
The group’s profitability strengthened significantly, with Profit After Tax (PAT) jumping 123% to ZiG427.8m, compared to ZiG191.688m in 2024.
A review of ZB’s balance sheet shows total assets rising 23% to ZiG17.671bn from ZiG14.
Net cash flow from operating activities closed positively at ZiG2.084bn, a turnaround from the negative ZiG313.528m in the prior year, reflecting improved cash generation efficiency. About 12% of the generated cash was channeled towards repayment of offshore loans, enabling the group to maintain a strong balance sheet with a debt-to-assets ratio of just 1%, down from 2% in June 2024.
In US dollar terms, total income slipped marginally by 1% to US$55.573m, from US$58.279m, weighed down by lower fair value gains. Operating expenses, however, rose 7% to US$34.199m, up from US$31.967m, driving the cost-to-income ratio to 59%, compared to 55% in the previous year.
Net Profit After Tax in US dollar terms came in at US$17.971m, up slightly from US$17.607m, while Return on Equity (ROE) remained steady at 7%.
On valuation, ZB’s price-to-book (P/B) ratio remains low at 0.06, pointing to an undemanding valuation, while ROE improved by three percentage points from 3% as at June 30, 2024.
Earnings per share (EPS) also recorded significant growth, climbing 123% from 1.22x to 2.
Looking ahead, ZB said it will continue to leverage technology, innovation, and enhanced customer experience to drive revenue growth and profitability.
