CBZ hails Zimbabwe's less volatile economy

CBZ Holdings Limited has praised Zimbabwe's improving economic environment and easing inflationary pressures, which have played a key role in the financial institution achieving a profit of ZWG537.5 million in the first quarter of the year.

The bank's positive performance comes on the back of continued stability in the local currency, the Zimbabwe Gold (ZWG), which has held firm for over six months. The stability, supported by a disciplined monetary policy stance, has drawn mixed reactions from economic stakeholders, some of whom remain cautious about the cost of such tight fiscal measures.

Adding to these developments, the Reserve Bank of Zimbabwe recently liberalised exchange rates for traders — a move widely regarded as pivotal in promoting long-term exchange rate stability.

Presenting the group's trading update for the period ending March 31, 2025, CBZ Group Chief Governance Officer, Rumbidzayi Jakanani, described the quarter's operating conditions as relatively stable despite headwinds in the global economy.

"Despite the negative global economic sentiments, Zimbabwe's operating environment was less volatile, with relative stability in the goods and foreign exchange markets, supported by a disciplined monetary policy environment," she said.

She noted that the local currency depreciated only slightly — by 3.75% — against the US dollar during the quarter, closing March at a rate of ZWG26.77 to the greenback.

The group's financial results reflect strong fundamentals, with total income amounting to ZWG1.41 billion. Of this, profit after tax stood at ZWG537.53 million, bolstered by both a solid capital base and widespread market activity, particularly in deposit mobilisation and transactional volumes.

Funded income contributed ZWG486.24 million to the top line, while non-funded income significantly outperformed expectations at ZWG938.03 million, helping to drive robust quarterly results.

CBZ's asset base closed the first quarter at ZWG38.75 billion, supported by customer deposits totalling ZWG26.79 billion. The strong showing, the group said, provides a solid foundation for the rest of the financial year.

"Our first-quarter performance sets the tone for the remainder of the financial year and underlines our commitment to delivering sustainable value to all stakeholders," the group noted in its update.

CBZ's results offer a glimpse into the possible resilience of the financial sector in the face of structural reforms and ongoing monetary adjustments, as Zimbabwe seeks to consolidate economic gains amid global uncertainty.