BancABC swings to profit

Published: 2 hours ago

African Banking Corporation of Zimbabwe Limited (BancABC) has returned to profitability, posting a profit after tax of ZiG146,6 million for the half year ended June 30, 2025, reversing a loss-making position from the previous year.

The turnaround was largely attributed to the bank avoiding the heavy net monetary losses that weighed on its 2024 performance. In the comparative period, BancABC recorded a loss after tax of ZiG331,77 million, driven by a net monetary loss of ZiG896,09 million. In the latest review period, no monetary gains or losses were reported.

Board chairman Nhena Nyagura said the bank's improved performance reflected disciplined execution of its strategy and resilience across core business lines.

"We are pleased to report a profit after tax (PAT) of ZiG146,6 million for the half-year, a significant turnaround from the loss after tax of ZiG331,7 million recorded in the corresponding period last year. This result was driven by strong performance across our core revenue lines," Nyagura said.

Non-funded income growth was underpinned by rising digital transaction volumes and solid foreign exchange trading activity, while net interest income benefitted from a targeted expansion of the loan book. Net interest income after expected credit losses surged to ZiG162,82 million, up from ZiG41,67 million in the prior year. Loans and advances rose 26% to ZiG1,8 billion, reflecting increased lending to key economic sectors.

Non-interest income, however, declined to ZiG564,79 million from ZiG1,02 billion, mainly due to a 79% reduction in net trading income.

Despite this, BancABC's balance sheet continued to strengthen, with total assets climbing 11% to ZiG5,9 billion. Nyagura said the growth signaled sustained client confidence and a stronger market footprint.

"As part of our dynamic balance sheet management strategy, we are actively evaluating our portfolio of investment properties to unlock capital and redeploy it into higher-yielding assets that align with our core growth objectives," he noted.

The chairman acknowledged the tight liquidity environment but said the bank's loan-to-deposit ratio of 53% demonstrated prudent risk management and disciplined capital deployment.

BancABC also credited its digital transformation drive for supporting revenue diversification and improving client experience. System upgrades have delivered transaction success rates above 99,9% for three consecutive quarters, ensuring reliability in Zimbabwe's multi-currency environment.

Nyagura added that investments in both technology and human capital remain central to the bank's ambition of delivering sustainable growth.

"The group's performance is a direct result of its focused execution on key strategic pillars. We have made substantial investments in our digital transformation, deploying enhanced systems and platforms that have fortified our transactional infrastructure," he said.

With strengthened liquidity buffers, an expanding loan book, and growing digital capabilities, BancABC said it is well positioned to pursue growth opportunities despite prevailing economic headwinds.
- newsday

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