Published: 4 hours ago

Financial services group ZB Financial Holdings has reported a strong set of results for the half-year ended June 30, 2025, demonstrating resilience amid a challenging economic environment.

The group's total income surged 77% to ZiG1.908 billion, up from ZiG1.075 billion in the same period last year. Growth was driven primarily by non-funded income, other operating income—mainly rental revenue—and net interest income, which contributed 47%, 34%, and 21% of total income, respectively.

Operating expenses rose 80% to ZiG1.371 billion from ZiG760.778 million, largely due to one-time restructuring costs. Despite this, ZB highlighted ongoing robotics and automation initiatives aimed at improving efficiency and reducing future costs. The group's cost-to-income ratio closed at 72%, slightly higher than 71% in the prior year.

Profitability strengthened markedly, with Profit After Tax (PAT) jumping 123% to ZiG427.8 million from ZiG191.688 million in 2024.

A review of the balance sheet shows total assets rising 23% to ZiG17.671 billion, underpinned by growth in cash and cash equivalents (30% of total assets) and investment properties (21%). Mortgages and other advances fell 10% as the group maintained a cautious lending approach amid economic headwinds.

Net cash flow from operating activities turned positive at ZiG2.084 billion, a turnaround from a negative ZiG313.528 million in the prior year. Approximately 12% of this cash was directed toward repayment of offshore loans, helping maintain a strong balance sheet with a debt-to-assets ratio of just 1%, down from 2% in June 2024.

In US dollar terms, total income dipped slightly by 1% to US$55.573 million from US$58.279 million, weighed down by lower fair value gains. Operating expenses rose 7% to US$34.199 million, pushing the cost-to-income ratio to 59% from 55% in the prior year. Net Profit After Tax in US dollars rose marginally to US$17.971 million from US$17.607 million, with Return on Equity (ROE) holding steady at 7%.

ZB's valuation remains undemanding, with a low price-to-book (P/B) ratio of 0.06, while ROE improved by three percentage points from 3% in June 2024. Earnings per share (EPS) climbed 123% from 1.22 to 2.72, reflecting strengthened profitability.

Looking ahead, ZB Financial Holdings said it will continue leveraging technology, innovation, and enhanced customer experience to drive revenue growth and profitability.
- Business Times

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