Zimbabwe’s largest financial services group, CBZ Holdings, says it is on track to significantly expand its balance sheet and profitability despite mounting global and domestic economic pressures.
Group Chief Executive Officer Lawrence Nyazema told analysts that the company remains confident of achieving its long-term targets including doubling its balance sheet and reaching US$100 million in annual profits by 2028.
“We believe we are on a sustainable growth path,” he said, noting that total assets have already grown from about US$1 billion in 2024 to between US$1.5 billion and US$1.6 billion.
The group has set a goal to double its balance sheet within four years, a target Nyazema said now appears achievable given current momentum.
CBZ reported profits of US$54 million for the latest financial year but the CEO suggested earnings could have been higher if not for tax-related constraints that have since been addressed.
“If this had been last year, it means we would have been on US$66 million which in my view means we are well on course to US$100 million,” he said.
Despite the optimism, Nyazema acknowledged growing global risks including geopolitical tensions in the Middle East, rising energy costs and potential supply chain disruptions.
“We don’t take it for granted that there are headwinds but the reason we are here is to deal with headwinds,” he said.
The group’s strategy hinges on diversification and regional expansion, alongside efforts to integrate Zimbabwe’s large informal economy into the formal banking sector.
Deposits grew strongly during the year reaching close to US$1.1 billion with much of the increase attributed to funds flowing in from informal businesses and individuals gaining confidence in the banking system.
Nyazema said creating financial products that cater to informal sector participants such as housing and payment solutions has been key to unlocking this growth.
“As people get more comfortable and confident that they are not going to lose their savings, they will be doing more with the formal sector,” he explained.
He also highlighted the structural imbalance within the country’s financial system, where a roughly US$50 billion economy is supported by a relatively small deposit base.
“There is no way you can service it with just US$5 billion in deposits,” he said calling for increased foreign investment, diaspora inflows and access to international lines of credit.
CBZ itself secured US$130 million in new credit lines during the year and plans to raise at least US$150 million more in 2026 to support lending and expansion.
The bank’s loan book closed the year at nearly US$400 million although Nyazema said the target is to push lending to at least US$500 million with a focus on productive sectors such as mining and agriculture.
Beyond traditional banking, the group is also investing in infrastructure and social projects including housing, water systems and renewable energy solutions.
Nyazema cited ongoing partnerships to roll out prepaid water meters as an example of how financial institutions can address service delivery challenges while creating sustainable business opportunities.
“It’s now time for us to make investments in water,” he said.
He also called for broader policy alignment to reduce the cost of doing business urging authorities to review the Intermediated Money Transfer Tax (IMTT) following recent reductions in bank charges agreed with the Reserve Bank of Zimbabwe.
Looking ahead, CBZ expects continued growth in deposits, lending and digital transactions underpinned by increasing economic activity and deeper financial inclusion.
Nyazema said the group’s long-term vision is not only to grow profits but to play a transformative role in Zimbabwe’s economy.
“In summary, we want to make an impact and normalise the way financial solutions are delivered in this economy,” he said.
