Operating environment

The operating environment during the review period showed relative macroeconomic stability, underpinned by strong performance in Agriculture and Mining. This was alongside resilient foreign currency inflows from buoyant mineral commodity prices, export volume growth and diaspora remittances. In addition, the sustained tight monetary policy helped moderate inflation with the year-on-year inflation reducing to 15% in December 2025, compared to 92,5% in June 2025. Monetary Policy actions also helped stabilise the exchange rate with the ZWG appreciating by 3.58% against the USD, from ZWG26.95 in June 2025 to ZWG25.98 by the end of December.
The positive developments in the macro economy helped add resilience in the Banking sector even though the sector continues to navigate challenges of inadequate liquidity, constrained lending growth and financial inclusion.
Despite the challenges, InnBucks has remained focused on delivering innovative financial solutions and has resultantly grown over the reporting period across several measures.

Financial performance

The MicroBank recorded a profit after tax of ZWG99.5 million for the six months period ended 31 December 2025, representing a significant growth from ZWG33 million reported in the prior comparative period. The increase in profit was driven by lending growth with gross loans increasing by 24% to ZWG1.9 billion. In addition, the growth in deposits from customers to ZWG1.7billion also helped drive up net fees & commissions income by 200% and trading income by 564%.

Capital

InnBucks MicroBank's core capital position closed at ZWG396.2 million as at 31 December 2025, which is above the current minimum regulatory requirement of ZWG129.9 million (US$5.0 million USD equivalent) with a comfortable margin of safety being maintained. The MicroBank's capital adequacy ratio remained within regulatory threshold, closing the half year at 16.4% which is above the regulatory minimum threshold of 15%. With a liquid assets ratio of 57%, 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 period under review.

Directorate

There have been no changes to the composition of the Board during the period under review, ensuring continuity and stability in our leadership.

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. Our organization prioritizes transparency and accountability, ensuring that all employees understand their roles in maintaining compliance through regular training and awareness programs. Outlook As we look ahead, the economy is projected to sustain growth above the 2025 levels given the expected continuation of Fiscal and Monetary policies that support growth in key economic sectors. We anticipate the stability of the local currency to continue whilst liquidity is being made available for the banking sector's intermediary role to continue functioning effectively. At InnBucks, we are positioned well to leverage this growth momentum and continue providing digitally led solutions to our customers.

Appreciation

On behalf of the Board, I would like to express my sincere gratitude to our dedicated management team and committed employees for their continued contribution to the success of InnBucks MicroBank limited. We also wish to express our gratitude to our valued customers and partners for their loyalty and continued support, which remains the cornerstone of our growth and success.