Financial powerhouse, CBZ Holdings Limited, has delivered a robust performance for the first quarter of 2025 recording a profit after tax of ZWG537.5 million, despite moving through a turbulent global economic landscape.
The group’s Q1 trading update released recently showed resilience in the face of international financial turmoil triggered by rising geopolitical tensions and the termination of key U.S. foreign aid grants.
A surge in global trade tariffs in February further rattled markets, leading to widespread asset sell-offs and tighter financial conditions.
Yet, the country’s relatively stable operating environment provided a contrasting backdrop.
The local currency depreciated by a modest 3.75% against the U.S. dollar, ending March at ZWG26.77 while disciplined monetary policies from the Reserve Bank of Zimbabwe (RBZ) helped cushion the financial sector.
Key policy shifts included the introduction of a targeted finance facility to stimulate productive sector lending and an increase in export proceeds surrender requirements from 25% to 30%.
Additionally, the Central Bank rolled out a USD-denominated deposit facility aimed at exporters and scrapped margins on forex trading.
CBZ’s income streams reflected strategic positioning. Total income reached ZWG1.41 billion, with a strong ZWG938 million contributed by non-funded income—largely driven by digital banking channels.
Funded income stood at ZWG486 million. The Group’s asset base swelled to ZWG38.75 billion, underpinned by deposits totaling ZWG26.79 billion.
“Our sustained success reflects our commitment to building enduring partnerships and delivering exceptional financial solutions,” the Group said highlighting their focus on digital transformation and tailored customer services.
Despite a challenging capital market environment that saw the Zimbabwe Stock Exchange All Share Index drop 5.7%—with CBZ’s share price falling 18% to ZWG7.00—the company remained optimistic.
The Victoria Falls Stock Exchange (VFEX), where CBZ is also listed, bucked the trend with a 6% rise in its All Share Index, underpinned by foreign currency-denominated stock demand.
CBZ’s liquidity and capitalisation position remain strong, with total equity at ZWG8.72 billion.
The Board expressed confidence in the Group’s continued status as a going concern confirming all subsidiaries are fully capitalised and compliant with regulatory thresholds.
Looking ahead, CBZ anticipates sustained local monetary tightening and volatile global markets.
However, the Group plans to seize growth opportunities across the country and the region through innovation, strategic investment, and efficient capital deployment.
“Strategic investments in technology, people, and governance systems will remain central to our value-creation agenda,” said Rumbidzayi Jakanani, CBZ’s Group Chief Governance Officer.
Aurelia Hoppe / May 2, 2025
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