Operating environment

The global economic landscape in 2025 has been characterised by modest growth amid uncertainty with GDP forecasts from the IMF and World Bank ranging between 2.5% to 3.0%. The slowdown in global growth was driven by geopolitical tensions, trade frictions and broader tariff escalations which are disrupting supply chains and trade flows.

While global growth has remained subdued, Zimbabwe showed signs of stable growth, supported by improved agricultural output and increase in foreign currency inflows. The recently introduced ZWG currency was devalued by 43 % in September 2024, but remained stable for the rest of the financial period on the back of tight monetary policy measures. These measures included among other things, the increase of statutory reserve requirements to 30% and the increase in the bank policy rate from 20% to 35%. Consequently, the financial sector had to contend with managing liquidity constraints across major currencies, thereby limiting asset growth. In addition, the continued informalisation of the market has seen transactions increasingly being conducted outside of formal channels, thereby impacting negatively on banks' deposits, transactions volumes and the sector's financial intermediary role. Despite the challenges in the operating environment, InnBucks MicroBank has remained resilient, focusing on delivering innovative financial solutions and has resultantly grown over the reporting period across several measures.

Financial performance

The MicroBank posted a profit after tax of ZwG74.6 million for the year ended 30 June 2025 which is up 195% from the previous year. This increase was largely driven by 196% growth in interest income which was as a result of a 327% growth in loans and advances up to ZwG1.5 billion. Whilst the lending growth was significant, we continue maintaining a firm credit risk management framework to ensure a sustainable quality portfolio. In addition, there was a 14.4 times growth in trading income coming off a low base to reach ZwG148.7 million. However, fees and commission income declined by 2% to ZwG178.7 million following the launch of the MicroBank's subscription-based pricing model (KaOne) which is consistent with the MicroBank's strategy of creating an affordable financial services ecosystem.

Capital

InnBucks MicroBank's core capital position closed at ZwG306.7 million as of 30 June 2025, which is above the current minimum regulatory requirement of ZwG134.7 million (US$5.0 million USD equivalent) with a comfortable margin of safety being maintained. The MicroBank's capital adequacy ratio remained strong, closing the year at 17.6% which is above the regulatory minimum threshold of 15%. With a liquid assets ratio of 43%, the MicroBank carried a comfortable buffer above the regulatory minimum level of 30% representing capacity to underwrite more business.

Dividend

No dividend has been declared for the year under review.

Directorate

I would like to inform our valued stakeholders of the resignation of Tafadzwa Madya from the position of Chief Finance Officer, effective 30 September 2024. We extend our sincere gratitude to Tafadzwa for his leadership, and dedication to the MicroBank during his tenure. We wish him continued success in his future endeavours.
The following Non-Executive Director appointments were made i.e. Mark Hurst, Amit Gupta, Mike Mudondo and Isaack Manitho. These incoming Directors bring significant experience and expertise to the Board, and we look forward to their invaluable contributions to the MicroBank's growth and development.
In addition, I am pleased to announce the appointment of Baldwin Guchu as the Chief Executive Officer, Tinashe Hove as the Chief Finance Officer and Johnson Mahanya as the Business Banking Executive. Consequently, Baldwin transitions from Non-Executive to Executive Director. Daisy Zinyemba, who has successfully led the company as CEO since 2022, will move into the role of Chief Operating Officer. The Board expresses its gratitude to Daisy for her outstanding leadership and looks forward to her continued contributions as COO. We extend a warm welcome to both the incoming Non-Executive and Executive Directors as they assume their new roles and look forward to their contributions as we grow the business together.

Commitment to compliance

At InnBucks MicroBank, our commitment to compliance is a core principle. We are dedicated to adhering to international best practices and local regulatory requirements, particularly those set by the Reserve Bank of Zimbabwe. Our organization prioritizes transparency and accountability, ensuring that all employees understand their roles in maintaining compliance through regular training and awareness programs.

Outlook

Looking ahead, the economy is projected to recover from a low growth rate of 1.7% in 2024 to 6% in 2025 driven by positive prospects of the 2024/2025 summer cropping season. We anticipate the stability of the local currency to continue whilst liquidity being made available for the banking sector's intermediary role to continue functioning effectively. To navigate potential challenges, it will be essential for both the Government and Business to demonstrate resilience and adaptability in policy decisions.

Appreciation

On behalf of the Board, I would like to express sincere gratitude to our dedicated management team and committed employees for their continued contribution to the success of InnBucks MicroBank limited. We also extend our deep appreciation to our loyal customers and supportive partners for their continued patronage and support.