FINANCIAL juggernaut, CBZ Holdings Limited (CBZ) expects earnings growth to be driven by prudent asset growth, improved risk-based pricing, continued expansion of fee and transactional income streams for the remainder of the year, NewsDay Business can reveal.
This comes as CBZ is targeting double-digit growth in revenue, profitability and assets in 2026, leveraging a strengthened US$1,58 billion balance sheet to accelerate digital transformation, expand its financial services ecosystem and drive regional expansion.
As previously reported in our sister paper, Zimbabwe Independent, CBZ’s strategy follows a strong 2025 performance in which profit after tax rose 39,4% to US$54,31 million, while deposits increased 27,7% to US$1,07 billion.
“Looking ahead, we expect earnings growth to be driven by prudent asset growth, improved risk-based pricing, continued expansion of fee and transactional income streams, enhanced operating efficiencies, and a sustained focus on recoveries,” CBZ chief executive officer Lawrance Nyazema told NewsDay Business in an interview.
“While recent regulatory changes may moderate some core banking income lines, our diversified business model positions us to deliver sustainable earnings growth over the remainder of 2026 and beyond.”
He said in 2025, the group recognised one-off Treasury gains, which enhanced profitability.
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“During the prior period, earnings were supported by strong recoveries from the loan book, which resulted in material Expected Credit Loss (ECL) write-backs and a positive uplift to the bottom line,” Nyazema said.
However, he said profitability softened in the current quarter.
“In the current quarter, these recovery-driven releases and Treasury related gains did not recur at the same level,” Nyazema said.
“Furthermore, the operating environment evolved during the quarter, with rising costs of doing business placing pressure on profitability, resulting in a softer profit after tax outcome.”
Despite this, the group has deliberately prioritised balance sheet quality and long-term sustainability over short-term earnings growth.
“Importantly, over the past year, the group has deliberately prioritised balance sheet quality and long-term sustainability over short-term earnings optimisation,” Nyazema said.
“This has involved a more disciplined approach to credit extension and portfolio management, which is reflected in the continued uplift in asset quality metrics and a more resilient balance sheet.”
Lending activity remained robust last year, with loans and advances growing 22,8% to ZiG10,19 billion (US$392,2 million) from ZiG8,30 billion (US$321,7 million) in 2024.
For the current quarter, funding income growth remains broad based.
“Funded income growth has remained broad based, supported by lending activity across the productive sectors of the economy, with demand evident across multiple segments,” Nyazema said.
“However, the structure of the funding used to support productive sector lending, being particularly foreign-sourced medium-term deposit lines, together with the covenants attached to their deployment, naturally influences how credit is allocated within the portfolio.”
As a result, there was a measured bias towards export oriented and foreign currency generating borrowers who are best aligned to these requirements.
“Overall, we continue to support a wide range of sectors, in line with our funding structure and risk appetite.”