Financial Highlights
The Group delivered profit after tax of K868 million for the period, marginally down by 1% compared to the previous year. The slight decline was primarily attributable to a 20% (K295 million) increase in operating expenses, which offset the positive growth recorded in operating income.
Total operating income increased by 13% (K367 million), supported by strong growth across key revenue lines. Non-funded income rose by 55% (K232 million), largely reflecting Treasury income growth of 43% (K174 million) and K55 million from other recoveries. Net fees and commissions increased by 24% (K56 million), underpinned by higher transactional volumes across digital channels, while net interest income grew by 3%, reflecting improved asset yields and growth in the loan book.
Operating expenses increased by 20% (K295m) mainly due to strategic investments in people, technology and marketing initiatives aimed at driving customer acquisition, deposit growth, loan uptake and higher transaction volumes. These investments support sustainable growth, enhance customer experience and position the Bank to grow non-funded income through increased transaction activity. In addition, the introduction of the Bank of Zambia deposit insurance scheme, aimed at strengthening depositor protection and enhancing the stability and resilience of the banking sector, contributed an additional K85 million in operating expenses.
The Group maintained a strong financial position as at 30 June 2026, supported by continued balance sheet growth. Government securities increased by 45% (K4.8 billion), loans and advances grew by 9% (K1.6 billion), cash balances increased by 18% (K1.7 billion), customer deposits rose by 5% (K2.1 billion), and retained earnings improved by 25% (K1.3 billion). Overall, total assets grew by 7% (K3.5 billion). The Group remains focused on prudent and sustainable growth of its assets and liability base to safeguard shareholder value.
Capital
The Group remains well capitalized, with a strong capital adequacy position that provides sufficient headroom to support business growth, regulatory requirements and shareholder returns. As at 30 June 2026, the Group reported a capital ratio of 25.47%, following a dividend payout of K704 million, reflecting disciplined capital management and continued focus on optimizing returns on investment.
Future Outlook
Looking ahead, the Group remains focused on sustainable growth through digital transformation, operational excellence and customer centric solutions. The Bank will embrace and leverage Artificial Intelligence (AI) and advanced data analytics to drive innovation, improve efficiency and enhance customer experience as it accelerates its digital journey. The Group will also continue to respond proactively to evolving regulatory and economic conditions, while maintaining a disciplined approach to growth, profitability and long-term shareholder value creation.
By Order of the Board
Kaluba G Kaulung’ombe-Inampasa
Company Secretary
Issued in Lusaka, Zambia on 15 September 2026
Related Download
DOWNLOAD: Unaudited Results For The Period Ended 30 June 2026.pdf
