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CBZ Holdings Limited, Zimbabwe’s largest financial services group, announced an after-tax profit of US$32.57 million for the six-month period ended 30 June 2025. The figure represents a 33.2% decline from the US$48.74 million reported in the comparative period in 2024, a performance the Group attributes to a combination of market-wide liquidity constraints and the absence of significant one-off technical gains that boosted the prior year’s results.
A key focus of the results presented by Group Chief Executive Officer, Mr. L. Nyazema, and Group Chief Finance Officer, Mr. J. Makombe, during the Group’s 2025 analyst briefing was clarifying the prior year’s results, which were significantly impacted by technical accounting adjustments following the change in functional currency from the Zimbabwean Dollar (ZWG) to the United States Dollar (US$) in April 2024.
By Gamuchirai Mapako
The group explained that the H1 2024 profit of US$48.74 million included a US$33.24 million exchange gain from the revaluation of ZWG liabilities, a US$25.14 million technical fair value loss on investment properties, and a US$24.83 million release of deferred tax liabilities. After adjusting for these non-recurring technical items, the Group’s sustainable earnings for H1 2024 were US$29.37 million.
When compared to this adjusted baseline, the H1 2025 profit of US$32.57 million actually reflects an 11.0% increase in core profitability, demonstrating the Group’s resilient operational performance despite a tough economic climate.
The group’s total income for the period closed at US$106.93 million, from US$129.41 million in H1 2024. This contraction was driven by declines in both funded and non-funded income streams.
Net interest income (funded income) decreased to US$36.51 million. This was primarily due to subdued loan disbursements caused by a tight liquidity environment and higher interest expenses on external credit lines. Non-funded income also fell by 17.4% to US$70.42 million. The decline here was largely because the previous year’s results benefited from foreign exchange gains during a period of rapid currency depreciation, whereas the exchange rate remained relatively stable in H1 2025, depreciating only 4% year-to-date.
A significant bright spot was a drastic reduction in Expected Credit Loss (ECL) expenses, which fell 92.3% to just US$1.0 million from US$13.01 million in 2024. This was credited to successful recoveries of previously non-performing loans and a general improvement in the quality of the Group’s loan book.
Operational expenses (Opex) were also well managed, decreasing by 8.4% to US$59.48 million, underscoring the group’s disciplined cost management and operational efficiency.
Despite the profit dip, the group’s balance sheet exhibited robust growth. Total assets increased by 7.0% to US$1.43 billion, supported by a growth in customer deposits, which reached US$962.76 million. The loan book expanded by 14.1% to US$366.98 million, indicating targeted lending despite market conditions.
Shareholders’ funds grew to US$331.88 million, bolstered by retained earnings, which enhanced the Group’s capital adequacy and resilience.
A breakdown of subsidiary performance in US dollar terms showed the banking unit, CBZ Bank, remained the dominant profit centre, contributing a Profit After Tax (PAT) of US$38.83 million. The investments cluster followed with a PAT of US$0.66 million, while the insurance segment contributed US$0.63 million. The agro-business unit, Agroyield, recorded a modest profit of US$0.12 million.
The group’s sustained value creation through a growing dividend payment trajectory also signalled confidence in future earnings. Looking ahead to the second half of 2025, CBZ Holdings outlined a strategic focus on several key areas: fixing the foundation through recapitalisation of subsidiaries and liquidity optimisation; business transformation via new digital platforms like ZikiMall; and exploring alternative revenue streams with a specific focus on the diaspora community.
According to the CEO, the banking institution has set ambitious full-year targets, including a 20% growth in profitability, a 12% increase in its Capital Adequacy Ratio (CAR), and a 15% growth in total assets.
While CBZ Holdings’ headline profit for H1 2025 was down year-on-year, the underlying core business performance showed commendable resilience and growth when stripped of one-off accounting effects. The group continues to leverage its market-leading position and diversified structure to navigate economic challenges and create long-term shareholder value.
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