Despite the structural shift, banks still posted profits in H1, although net profit slumped sharply. “Zimbabwe’s banking sector remained profitable in the first half of 2025, although net profit declined sharply from ZiG10. 4bn (US$760m) in 2024 to ZiG5. 0bn (US$184m), reflecting a shift away from volatile re-valuation, monetary and translation gains,” FBC said.
The report credited the current monetary policy regime for underpinning this transition. “Earnings are now based more on sustainable economic activities and anchored on real intermediation.
Reflecting the effectiveness of the current monetary policy regime, this earnings structure indicates a more stable operating environment — more predictable and better aligned with sound banking practices,” it noted.
But while earnings stability is improving, Zimbabwe’s financial system remains heavily dollarised, a challenge for the government’s de-dollarisation roadmap. “The Monetary Policy Statement reveals a nuanced picture of money supply developments in the economy, reflecting ongoing shifts in currency usage amid the broader de-dollarisation roadmap targeted for 2031.
As of June 2025, total broad money stood at ZiG97. 34 billion, representing a 16. 14% increase from December 2024.
This growth was primarily driven by foreign currency deposits, which rose by 18. 85% to ZiG70. 47 billion (approximately US$2. 6 billion), now accounting for over 72% of the total money supply, compared to 14. 45% held in local currency deposits.
Local currency time and negotiable deposits account for only about 3% of the total, while cash in circulation stands at just 0. 13%.
This composition underscores a heavily dollarised financial system, with the foreign currency component continuing to dominate both transactional and savings behaviour,” FBC observed.
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