STANBIC Bank Zimbabwe registered a near 48% increase in profit after tax to ZiG1,66 billion for the financial year ended December 31, 2025, driven by strong loan growth and a more diversified lending portfolio that strengthened its balance sheet.
The profit jump was from ZiG1,12 billion recorded in the previous year.
During the period under review, loans and advances rose sharply to ZiG13,22 billion from ZiG8,39 billion in 2024, reflecting increased lending activity across key sectors.
As a result, net interest income climbed 77% to ZiG1,8 billion, largely supported by growth in the bank’s average lending book.
During the presentation of the group’s 2025 results, Stanbic’s South African parent, Standard Bank Group, revealed that more than 80% of the Zimbabwean subsidiary’s balance sheet is composed of United States dollar-denominated deposits and assets.
Stanbic board chairperson Muchakanakirwa Mkanganwi said the bank’s performance was driven by improved lending in both local and foreign currencies.
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“The bank ended the year 2025 with a profit after tax of ZiG1,7 billion, exceeding prior period profit after tax of ZiG1,1 billion by 48%, supported by an improvement in net interest income as new lending assets were written both in local and foreign currency,” Mkanganwi said in a statement accompanying the bank’s annual results.
He said the bank had strong capital to support future growth.
The bank recorded an increase in its cash and balances with the central bank to ZiG15,73 billion during the review period, from the prior year’s ZiG10,56 billion.
“The bank closed the year with a qualifying core capital of ZiG4,3 billion (2024: ZiG4 billion) against the regulatory minimum in the local currency equivalent of US$30 million,” Mkanganwi said.
Last year's qualifying core capital converts to US$165,5 million.
Corporate lending recorded the fastest growth, rising 103% to ZiG6,02 billion during the review period.
Stanbic chief executive Solomon Nyanhongo said the expansion in lending was largely driven by growing demand for foreign currency funding as high local currency interest rates discouraged borrowing in the domestic unit.
“In addition, loan book growth was supported by drawdowns on offshore lines of credit that the bank had secured,” he said.
Non-funded income rose by 6% to ZiG3 billion, weighed down by unrealised exchange losses after the ZiG strengthened against the US dollar.
“We strengthened our leadership in mining — particularly platinum, gold, and lithium — by leveraging group balance sheets to deliver bespoke solutions,” Nyanhongo said.
“In agriculture, we provided foreign currency funding during a record tobacco season of 355 million kilogrammes.”
He added that the bank also supported key national energy and infrastructure projects while maintaining support for small and medium enterprises through US$6,5 million in credit facilities, business clinics, and cross-border trade advisory services.
Operating expenses rose 41% to ZiG2,2 billion, largely due to the impact of the ZiG currency depreciation that occurred in September 2024, which increased the local currency equivalents of foreign currency-denominated costs.
Customer deposits grew 39% to ZiG20,9 billion from ZiG15 billion in December 2024.
“This growth was supported predominantly by improved customer acquisition, increased market confidence, and strengthened deposit mobilisation efforts,” Nyanhongo said.
Growth in lending and higher balances held with the central bank pushed total assets to ZiG35,01 billion, representing a 37,41% increase from 2024.