FINANCIAL group, ZB Financial Holdings (ZBFH) recorded a profit after tax of ZiG261,94 million during the first quarter of 2025, driven by cost containment measures and a resilient balance sheet.
During the period, total income reached ZiG839,92 million marking a 119% increase from the 2024 comparative.
“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 its trading update for the first quarter.
“Total income [year to date] was ZiG839,928 million marking a 119% increase from March 31, 2024. The increase in income is attributable to the improved net interest margins of ZiG281,997 million and enhanced capabilities of the new core banking system, which enables more effective identification and collection of all potential income streams.”
The group earned commission and fees of ZiG428,3 million.
This was supported by an increase in electronic banking earnings, gross insurance premium of ZiG36,81 million driven by increased sales of funeral cover products, net property income of ZiG37,98 million as rental income remained stable, and other income of ZiG15,06 million.
“Operating costs amounted to ZiG464,285 million with a cost-to-income ratio of 55% (2024: 74%). The group maintained cost discipline as it continues to implement its cost containment initiatives,” ZBFH said.
“The deposits decreased by 40% to ZiG3,287 billion while insurance contract liabilities increased by 66% to ZiG446,333 million.
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“This was primarily driven by strong customer retention through proffering customer-centric products and solutions.”
The group reported that its total assets decreased by 6% to ZiG13,547 billion because of a decline in the cash and short-term funds and the deterioration of the value of the listed investments portfolio.
However, ZBFH reported a strong capital position in the first three months of the year with a total equity balance of ZiG7,98 billion driven by the period’s performance.
“The group’s capital and liquidity levels remained strong with all business units being compliant with the minimum regulatory capital requirements apart from ZB Building Society,” ZBFH said.
“The group expects to consolidate its banking operations into one banking license in the near future.”
ZBFH said it remained committed to delivering value-added financial solutions that support national development.
“The group continues to focus on sustainable revenue generation, diversification of investment portfolio and disciplined cost management to drive shareholder value in a dynamic operating environment,” the group added.
