InnBucks H1 profit jumps threefold as loans, fees surge

By ETimes

HARARE – InnBucks MicroBank tripled its half-year profit as strong growth in lending and transaction volumes lifted both interest and non-interest income.

The lender reported a sharp rise in earnings for the six months ended 31 December 2025, highlighting accelerating momentum in its digital banking strategy despite a still constrained operating environment.

Profit after tax appreciated to ZWG99.5 million from ZWG33.0 million in the comparable prior period, supported by a significant expansion in its loan book and a surge in fee and trading income.

Gross loans and advances increased 136% to ZWG1.9 billion, driving a 95% jump in interest income to ZWG231.2 million.

Net income from lending rose 21% to ZWG83.2 million, reflecting growth in the loan portfolio and investment in treasury assets.

The non-performing loans ratio remained below 1%, indicating stable asset quality despite rapid credit growth.

Non-interest income grew 313% to ZWG352.8 million, buoyed by higher transaction volumes and treasury-driven trading activity.

Net fee and commission income rose threefold to ZWG176.3 million, while trading income surged more than sixfold to ZWG176.5 million.

Customer deposits increased 126% to ZWG1.7 billion, with 64% held in current accounts, strengthening funding capacity.

Total assets expanded to ZWG3.8 billion from ZWG2.47 billion at the end of June 2025.

The bank’s core capital stood at ZWG396.2 million at period end, well above the regulatory minimum of ZWG129.9 million, with a capital adequacy ratio of 16.4%, exceeding the 15% threshold.

The liquid assets ratio closed at 57%, compared with the 30% minimum requirement.

“This growth out-turn resulted from the overall increase in the scale of our operations driving up lending and transactional income,” InnBucks MicroBank chief executive officer Baldwin Guchu said in a statement accompanying the financials.

Looking ahead, the bank said it would focus on stabilising its new wallet platform, expanding its agency and partner distribution network and rolling out segment-focused digital products to support further growth in both retail and business banking.