Online Reporter
Nelson Gahadza
Business Reporter
Zimbabwe’s banking sector remained resilient during the first half of the year, with strong growth in assets, deposits and lending underpinning the sector’s capacity to support economic activity amid prevailing macroeconomic stability.
According to the 2026 Mid-Term Monetary Policy Review Statement released by Reserve Bank of Zimbabwe Governor Dr John Mushayavanhu this morning, the banking sector remained safe, sound, profitable and inclusive as at June 30, 2026.
“The banking sector remains safe, sound, resilient and inclusive, benefiting from the prevailing stable macroeconomic conditions,” Dr Mushayavanhu said.
The sector’s total assets increased to ZIG247,86 billion by June 30, 2026, from ZIG215,78 billion in the previous period, reflecting continued expansion in banking operations.
Loans and advances also increased significantly to ZIG94,61 billion, up from ZIG79,30 billion, pointing to increased financial intermediation and the banking sector’s continued role in financing economic activity.
Total deposits rose to ZIG158,29 billion, from ZIG132,16 billion, providing banks with a stronger funding base to support lending and other productive activities.
The sector remained adequately capitalised, although capital buffers moderated during the period. The net capital base stood at ZIG43,30 billion, while core capital increased to ZIG36,80 billion.
The capital adequacy ratio stood at 24.13 percent, comfortably above the regulatory minimum of 12 percent, while the Tier 1 capital ratio was 20.51 percent, compared with a minimum requirement of 8 percent.
The figures indicate that banks maintained substantial capital cushions to absorb potential shocks and support continued operations.
Asset quality also remained relatively sound, with the non-performing loans ratio declining to 3,19 percent, from 3,64 percent and remaining below the regulatory threshold of 5 percent.
Liquidity remained strong, with the sector’s liquidity ratio at 55,85 percent, significantly above the minimum requirement of 30 percent. The loans-to-deposits ratio, excluding lines of credit, stood at 56,90 percent.
Profitability improved from the previous reporting period, with the banking sector recording a net profit of ZIG3,81 billion, compared with ZIG1,54 billion previously.
Return on equity rose to 9,25 percent, while return on assets increased to 1,63 percent, indicating an improvement in banks’ earnings performance.
Meanwhile, Dr Mushayavanhu said the financial sector was making progress in incorporating sustainability considerations into banking operations through the Sustainability Standards and Certification Initiative.
He said as at June 30, 19 institutions, comprising the Reserve Bank, banking institutions, development financial institutions, deposit-taking microfinance institutions and a bank holding company, were participating in the initiative.
“Two banking institutions had already received certification and were implementing activities aligned with the standards,” the Governor said.
The central bank noted that it had also completed the requirements for certification and was expected to receive certification from the European Organisation for Sustainable Development at the end of August.
