AFRICAN Banking Corporation of Zimbabwe Limited (BancABC) has overturned its loss-making position to post a profit after tax (PAT) of ZiG146, 6 million in its half year period ended June 30, 2025, driven by the bank not recording any net monetary losses.
In the comparative period, BancABC posted a loss of ZiG331,77 million owing to the bank recording a net loss on monetary position of ZiG896,09 million.
However, in the period under review, the bank did not record either a net loss on monetary position or gain.
In its half year financial performance for the period ended June 30, 2025, BancABC chairman Nhena Nyagura said the group’s strategic execution translated into a strong financial performance.
“We are pleased to report a profit after tax (PAT) of ZiG146,6 million for the half-year, a significant turnaround from the loss after tax of ZiG331,7 million recorded in the corresponding period last year. This result was driven by strong performance across our core revenue lines,” he said.
“Non-funded Income; Growth was propelled by a material increase in digital transaction volumes, reflecting our sustained investment in technology, and robust foreign exchange trading income supported by increased client flows. Net interest income: Performance was anchored by the strategic expansion of our loan portfolio in key segments.”
The net interest income after expected credit losses allowance for the period under review was recorded at ZiG162,82 million from a prior year comparative of ZiG41,67 million.
This comes as loans and advances grew by 26% to ZiG1,8 billion, reflecting the bank’s commitment to supporting economic activity.
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Meanwhile, non-interest income was ZiG564,79 million, down from the ZiG1,02 billion recorded over the same period last year.
The drop was owing to a near 79% reduction in net trading income.
Nyagura said the group’s statement of financial position remained robust and continued to expand, with total assets growing by 11% to ZiG5,9 billion.
“This growth is a clear indicator of continued client confidence and our increasing market presence,” he said.
“As part of our dynamic balance sheet management strategy, we are actively evaluating our portfolio of investment properties to unlock capital and redeploy it into higher-yielding assets that align with our core growth objectives.”
He said while the tight liquidity environment constrained the bank’s capacity to fully meet client demands, its loan-to-deposit ratio of 53% was a testament to its disciplined risk architecture and prudent capital allocation.
“This deliberate approach ensures we maintain strong liquidity buffers and strategic flexibility to act on market opportunities as they arise,” Nyagura added.
He said the group’s performance was a direct result of its focused execution on key strategic pillars.
“We have made substantial investments in our digital transformation, deploying enhanced systems and platforms that have fortified our transactional infrastructure,” Nyagura said.
“This has resulted in estate-wide system availability and transaction success rates above 99,9% for three consecutive quarters, materially improving the client experience and facilitating seamless commerce in a multi-currency environment.”
He said the group’s investments in technology and human capital were central to the bank’s objective of diversifying revenue streams and driving sustainable growth.
