ZBFHL delivers robust H1 results on digital pivot and revenue surge
LIVINGSTONE MARUFU
ZB Financial Holdings Limited (ZBFHL), a leading financial services group, has reported a stellar set of half-year results to June 30 2025, underpinned by a decisive digital transformation strategy, strong income growth, and tight cost controls.
Chief executive officer Shepherd Fungura said the measures introduced over recent years were now bearing fruit, with the group’s profitability surging across banking, insurance, and reinsurance operations.
“The group’s total income increased by 77% to ZWG1.908bn in H1 2025 from ZWG1.075bn in H1 2024. This performance outturn was on the back of significant improvement in non-funded income mainly from commissions fees, other income and funded income,” Fungura said.
He added that the expansion in lending was a key driver of net interest income, which rose by 113% to ZWG0.477bn from ZWG0.224bn.
“Disbursements of loans and advances during the period under review supported the growth,” he noted.
The bank’s rapid embrace of digital services significantly boosted non-funded income streams.
“Banking commissions and fees surged by 125%, to close 30 June 2025 at ZWG0.905bn. The improvement was mainly due to increase in electronic banking transactions as the group continues with its digitisation journey,” Fungura said.
This digital shift was anchored by the rollout of a new core banking system, Fusion Essence, commissioned at the start of 2025. The platform, which had been in development for several years, is expected to unlock further efficiencies as automation gains traction.
The group’s profit after tax jumped 123% to ZWG0.428bn, compared with ZWG0.192bn in the prior year. Income from lending activities, net of recoveries, also advanced 87% to ZWG0.406bn despite a sharp rise in loan impairment charges, which climbed to ZWG0.07bn from ZWG0.007bn.
Operating costs increased by 80% to ZWG1.372bn as the group invested in systems upgrades and undertook a staff rationalisation programme.
Management expects cost savings to flow through more strongly in the second half as automation reduces reliance on manual processes.
Profit from ordinary activities rose 71% to ZWG0.537bn from ZWG0.315bn.
ZBFH’s insurance operations delivered one of the biggest turnarounds in the period. Insurance revenue climbed 119% to ZWG0.423bn, supported by strong uptake of cash funeral products, acquisitions, and increased portfolio participation. Insurance service results swung into a ZWG0.066bn profit, compared with a ZWG0.085bn deficit in the same period last year.
ZB Reinsurance also returned to profitability, posting a ZWG22.7m profit after tax from a loss of ZWG3.97m last year. Its total assets grew 5% to ZWG0.513bn.
ZB Life Assurance, while still in loss territory, narrowed its deficit to ZWG6.437bn from ZWG9.170bn. Its assets rose 9% to ZWG1.104bn. The unit is in the final stages of migrating to a new core system, Life Central System, replacing the legacy Premia platform.
ZBFH’s total assets expanded by 23% to ZWG17.671bn, while customer deposits rose 14% to ZWG6.262bn, buoyed by higher US dollar deposits across all sectors. The group maintained a liquidity ratio above 40%, well clear of the regulatory minimum of 30%.
Equity rose 12% to ZWG7.444bn, supported by double-digit growth in retained earnings and other reserves.
The banking cluster, led by ZB Bank Limited, continued to anchor the group’s performance. ZB Bank’s profit after tax surged 143% to ZWG0.346bn, while assets climbed 25% to ZWG12.94bn.
ZB Building Society also staged a recovery, posting a ZWG0.021bn profit compared with a loss of ZWG0.030bn last year.
The group is extending its footprint beyond Zimbabwe. During the review period, it secured accreditation to write insurance business in Tanzania, adding to its existing regional presence through P&C Reinsurance in Botswana.
Looking ahead, Fungura said ZBFH would continue to align with Zimbabwe’s Vision 2030 strategy by channeling capital into productive sectors and deepening financial inclusion.
