Published: 15 May 2025

ZB Financial Holdings (ZBFH) has posted a strong financial performance in the first quarter of 2025, recording a profit after tax of ZiG261.94 million, underpinned by effective cost containment strategies and a resilient balance sheet.

In its latest trading update, the financial services group revealed that total income for the period reached ZiG839.92 million, reflecting a significant 119% increase compared to the same period in 2024. The surge in income was largely attributed to improved net interest margins, which amounted to ZiG281.99 million, and the enhanced performance of the group's new core banking system, which has enabled more accurate tracking and collection of potential revenue streams.

"The group produced a profit after tax of ZiG261.94 million during the first quarter of 2025, driven by the impact of the cost containment measures and a resilient balance sheet structure," ZBFH said in the update.

Commission and fee income contributed ZiG428.3 million to the group's earnings, boosted by rising electronic banking transactions. Additionally, the group recorded gross insurance premiums of ZiG36.81 million, largely driven by increased funeral cover sales. Net property income stood at ZiG37.98 million, supported by stable rental yields, while other income contributed ZiG15.06 million.

Despite a challenging economic environment, operating costs were contained at ZiG464.29 million, resulting in a cost-to-income ratio of 55%, down from 74% in 2024. ZBFH attributed this to ongoing implementation of its cost containment initiatives.

The group, however, reported a 40% decline in customer deposits to ZiG3.29 billion, which it said was counterbalanced by a 66% increase in insurance contract liabilities, now standing at ZiG446.33 million. This growth was linked to strong customer retention supported by tailored, customer-centric products.

Total assets fell by 6% to ZiG13.55 billion, mainly due to reduced cash and short-term funds, along with a dip in the value of its listed investments portfolio. Nevertheless, ZBFH maintained a strong capital position, with total equity at ZiG7.98 billion, underpinned by the quarter's solid financial results.

All business units, except ZB Building Society, met the regulatory capital minimum requirements. ZBFH noted that it plans to consolidate its banking operations under a single banking license as part of its strategic realignment.

Looking ahead, the group said it remains focused on providing value-driven financial solutions aligned with national development priorities. "The group continues to focus on sustainable revenue generation, diversification of the investment portfolio, and disciplined cost management to drive shareholder value in a dynamic operating environment," it said.
- the independent

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