Africa-Press – Zimbabwe. CBZ Holdings Limited (CBZ) has secured a strategic settlement agreement with the Reserve Bank of Zimbabwe (RBZ) to clear US$74,84 million in legacy and nostro gap liabilities at a US$1:ZiG1 rate, shielding its capital position amid an expansion strategy.
Settling these obligations at a 1:1 parity serves as a critical de-risking mechanism that transforms a volatile multi-million-dollar liability into a predictable, fixed-cost administrative process.
Consequently, CBZ has effectively shielded its ZiG9,13 billion total equity, as of last year, from currency-induced erosion and prevents massive exchange losses from impacting its profit after tax of ZiG1,44 billion in its financial year ended December 31, 2025, up 759,7%.
This move restores the health of the group’s international nostro infrastructure—essential for seamless Visa and SWIFT services—and signals a clean balance sheet to global partners.
Thus, the group has a stable foundation and liquidity necessary to aggressively fund its multi-divisional expansion into high-growth sectors.
“Included in the deposits balance above are amounts that are denominated in USD amounting to US$74 846 181 (December 2024: US$80 634 302), being legacy liabilities of US$46 177 401 (December 2024: US$46 177 401) and nostro gap accounts of US$28 668 781 (December 2024:US$34 456 901) which are shown at ZiG1 944 556 181 (December 2024: ZiG 2 080 244 040),” CBZ said in its financial report ended December 31, 2025.
“These liabilities, which are payable on demand, are subject to a special settlement arrangement with the RBZ as detailed in Note 26,7 to the financial statements, wherein the Reserve Bank of Zimbabwe (RBZ) will provide funding gradually to the group for all registered legacy liabilities and nostro gap accounts at an exchange rate of 1:1.”
The bank noted that US$90,79 million had been made available under this arrangement last year, from a 2024 comparative of US$70,25 million.
Total deposits were recorded at ZiG27,76 billion by the end of last year, up from ZiG21,59 billion in 2024, driven by demand and time deposits as well as credit lines.
“The group’s balance sheet remained resilient, with total assets increasing to ZiG41,15 billion from ZiG34,42 billion in the prior year,” CBZ chairman Luxon Zembe said.
“Loans and advances grew to ZiG10,19 billion, reflecting the group’s continued support for productive sectors of the economy.”
Loans and advances in the prior year were ZiG8,3 billion.
“Asset quality improved significantly during the period, with the group’s expected credit loss expense closing at ZiG20,97 million, compared to ZiG800,65 million in the prior year, reflecting stronger credit risk management and the improved quality of the loan book and other financial assets,” Zembe said.
These loans and advances translated to higher total income.
“Total income increased to ZiG5,73 billion, up from ZiG4,11 billion in the prior year, reflecting sustained growth in both funded and non-funded income lines.
“Net interest income grew to ZiG1,89 billion from ZiG1,38 billion in the prior year, supported by growth in the loan book and improved asset yields,” Zembe said.
“Non-funded income remained the largest contributor to revenue, increasing to ZiG3,86 billion from ZiG2,77 billion in the prior year.
“This growth was largely driven by increased transaction volumes across the group’s digital platforms and continued expansion of commission and fee-based income streams.”
He said this translated to “profit after tax closing at ZiG1,44 billion, compared to ZiG168,05 million in the prior year.”
“The group continues to leverage its strong governance framework, digital capabilities, and financial resilience to scale operations efficiently while maintaining prudent risk management and delivering sustainable long-term value to stakeholders,” Zembe said.
“Diversification into the region is a key strategic initiative that will witness expanded revenue streams and the strengthening of the group’s footprint across key markets.
“This approach is supported by strategic partnerships, targeted investments, and the replication of proven business models in high-potential jurisdictions.”
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