Online Reporter
Zimpapers Business Hub
ZB Financial Holdings says income surged 77 percent to ZiG 1,9 billion in the half year to June 30, 2025, spurred by ongoing digital transformation and benefits of efficiencies from the new core banking system, Fusion Essence.
The group’s total income increased by 77 percent to ZiG1,908 billion from ZiG1,075 billion in the same period of 2024 on the back of a significant improvement in non-funded income, mainly from commission fees, other income and funded income.
Group chief executive Mr Shepherd Fungura said disbursements of loans and advances during the period under review supported the 113 percent growth in the group’s net interest income from ZiG0,224 billion in 2024 to ZiG0,477 billion in 2025.
“Loan impairment charges rose from ZiG 0,007 billion in 2024 to ZiG0,07 billion in 2025. “Resultantly, income from lending activities net of recoveries grew by 87 percent from ZiG0,217 billion in 2024 to ZWG0,406 billion in 2025,” he said.
He noted that banking commissions and fees surged by 125 percent to close on June 30, 2025 at ZiG0,905 billion, and the improvement was mainly due to an increase in electronic banking transactions as the group continues with its digitisation journey.
The group generated insurance revenue of ZWG0,423 billion for the half year ended June 30, 2025, from ZiG0,193 billion during the same period the prior year, registering a growth of 119 percent.
“The growth was supported by positive performance on cash funeral products and business acquisitions as well as the increased share participation in some portfolios,” he said.
In the period under review, insurance service results improved to ZiG0,066 billion from a deficit of ZiG0,085 billion achieved during the same period in 2024, largely due to the aforementioned growth in insurance revenue.
As a result of growth in total income, the group’s profit after tax increased by 123 percent to ZiG0,428 billion.
According to the financials, deposits and other related funding account balances closed the half-year period at ZiG6,262 billion, a growth of 14 percent from ZiG5,483 billion as of December 31, 2024, supported by an increase in US dollar deposits across all sectors.
ZB Bank Limited posted a profit after tax that increased 143 per cent to ZiG0,346 billion from ZiG0,142 billion achieved during the same period in 2024.
The bank’s total assets grew by 25 percent from ZiG10,36 billion as at December 31, 2024 to ZiG12,94 billion as at June 30, 2025.
ZB Building Society posted a profit after tax of ZiG0,021 billion for the half year under review, from a loss of ZiG0,030 billion for the period ended June 30, 2024.
Mr Fungura said the profit position was mainly driven by revenue growth and reduced foreign currency revaluation losses.
On insurance operations, ZB Life Assurance progressively adopted a modern core system, Life Central System, which replaced Premia, and as of the time of reporting, data migration was being finalised.
“Having already established regional business presence through investment in P&C Reinsurance (Botswana), the group continues to scout for investment opportunities in the region and beyond, and during the review period, the group was accredited to write business in Tanzania,” he said.
ZB Reinsurance posted a profit after tax of ZiG22,7 million in June 2025, an improvement from a deficit of ZiG3,97 million attained in June 2024.
ZB Life Assurance posted a loss after tax of ZiG6,437 billion during the period under review, an improvement from a loss of ZiG9,170 billion during the same period in 2024.
Mashonaland Holdings posted a profit after tax of ZWG0,041 billion during the period under review, a 34 percent decline from the ZiG0,063 billion achieved for the period ended June 30, 2024.
Dr Fungura noted that during the period under review, the main focus remained on the multi-million-dollar new core banking system, Fusion Essence, which was implemented in January 2025.
“The group has now successfully addressed initial teething challenges experienced during the first quarter (Q1) of 2025.
“In addition, the group also launched a digital payment platform, Smile Cash, in the first quarter of 2025, which now boasts of over 1 million subscribers,” he said in a statement of financials.
Mr Fungura said as part of process re-engineering to enhance operational efficiencies through digital capabilities, the group commissioned a Robotics Process Automation Project in February 2025, expected to be finalised by December 31, 2025.
Mr Fungura also noted that the group’s medium-term plan for 2021-2025 comes to an end at the end of the year, and during the second half of 2025, the group will be putting in place the 2026-2030 mid-term strategy.
“Building on the base established thus far, the 2026-2030 midterm strategy will revolve around the attainment of sustainable business growth while creating happy people,” he said.
Mr Fungura highlighted that in as much as the 2021-2025 strategy embedded long-term sustainability of operations as a key strategic theme, the 2026-2030 strategy will further the sustainability agenda beyond attainment of SSCI (Sustainability Standards and Certification Initiative), putting more emphasis on implementation of sustainability and Environmental, Social and Governance (ESG) programmes across the group.
