This Trading Update for the first quarter ended 31 March 2026 provides an overview of ZB Financial Holdings’ operating environment, financial performance, regulatory compliance, and economic outlook. The Group maintained resilience amid evolving macroeconomic conditions, supported by strong capital positions, diversified revenue streams, and disciplined operational management.
At a glance
Currency performance: The local currency appreciated by 2.61% against the United States Dollar during Q1 2026.
Inflation: Inflation increased from 3.8% in February 2026 to 4.4% in March 2026 due to imported inflation pressures.
Commissions and fees: Grew by 7% from ZWG365.86 million in 2025 to ZWG378.22 million in 2026.
Insurance revenue: Increased by 21% from ZWG33.84 million in 2025 to ZWG41.06 million in 2026.
Property income: Rose by 27% year-on-year, supported by growth in rental income and property management services.
GDP outlook: Zimbabwe’s projected GDP growth for 2026 ranges between 5% and 8.5%.
Download the full trading update
For detailed financial performance insights, economic analysis, operational highlights, and the Group outlook, download the complete ZBFH Trading Update – Q1 2026 report below.
Operating Environment
During the quarter under review, the local currency appreciated against the United States Dollar, strengthening from US$1: ZiG25.9807 in January 2026 to US$1: ZiG25.3209 by the end of March 2026. This appreciation was largely driven by tighter liquidity management measures and increased uptake of gold-backed monetary instruments.
Despite currency gains, inflation increased to 4.4% in March 2026 from 3.8% in February 2026, reversing the prior disinflationary trend. Imported inflation pressures, particularly higher global oil prices linked to geopolitical tensions, contributed to increased domestic fuel and transport costs.
Monetary authorities maintained a tight monetary policy stance, elevated interest rates, and strict liquidity controls in line with the 2026 Monetary Policy Statement to anchor inflation expectations and safeguard currency stability.
Q1 FY2026 Financial Performance
Commissions and Fees
Commissions and fees increased by 7% from ZWG365.86 million in 2025 to ZWG378.22 million in 2026, supported by increased transaction volumes and the Group’s continued focus on innovative financial solutions.
Net Earnings from Lending Activities (NELA)
Net income from lending activities declined during the period due to reduced asset creation arising from liquidity constraints within the Group’s banking operations. Treasury Bills maturing and being reissued at a 0% coupon rate also contributed to the decline.
Property Income
Property income increased by 27% year-on-year from ZWG46.02 million in 2025 to ZWG58.48 million in 2026, driven by growth in rental income and property management services.
Insurance Revenue
The insurance cluster delivered a steady performance with insurance revenue growing by 21% from ZWG33.84 million in 2025 to ZWG41.06 million in 2026. Growth was underpinned by consistent premium inflows and disciplined underwriting practices.
Capital and Regulatory Matters
The Group maintained strong capital and liquidity positions throughout the quarter, with all business units remaining fully compliant with minimum regulatory requirements.
ZB Financial Holdings continues to strengthen operational capacity and maintain adequate capital buffers to support current operations and future growth initiatives in an evolving macroeconomic environment.
Outlook
Zimbabwe’s annualised GDP growth for 2026 is projected to range between 5% and 8.5%, depending on the source of estimates. The World Bank projects 5% growth, while the Government of Zimbabwe forecasts 8.5%, supported by developments in mining, agriculture, and ongoing policy reforms.
Despite risks associated with climate shocks and imported inflation pressures, particularly elevated global oil prices, the Group remains resilient and committed to delivering value-adding financial solutions to the Zimbabwean economy.
ZB Financial Holdings will continue pursuing sustainable revenue generation strategies, diversifying its investment portfolio, and implementing effective cost management measures to enhance shareholder value.
Disclaimer
This Trading Update for the quarter ended 31 March 2026 is issued in terms of the Zimbabwe Stock Exchange Practice Note 9 and is released in substitution for the requirement to publish Quarterly Interim Financial Reports in accordance with Section 35(5) of the ZSE Listing Requirements, Statutory Instrument 134 of 2019.
This document has been prepared for informative purposes only. No liability whatsoever for any loss arising from the use of this report or its contents shall be accepted by ZB Financial Holdings, its directors, employees, or associates.
