Zanaco H1 2026 Results: Income up 13%, Profit Dips 1%

In Short

• Zanaco released unaudited half-year results for the period ended 30 June 2026.
• Group operating income rose 13% to K3.295 billion.
• Profit after tax slipped 1% to K868 million.
• Total assets grew 7% to K54.481 billion.
• The bank reported a 25.47% capital ratio after investments in people, technology, and marketing.

What Happened

Zanaco published its unaudited H1 2026 financial results on 15 September. The update covers the group and the bank for the six months ended 30 June 2026.

Operating income, meaning revenue from core banking activities like interest on loans and fees, increased to K3.295 billion from K2.929 billion a year earlier. Profit before tax was broadly flat, down 1% to K1.298 billion. Profit attributable to shareholders also eased 1% to K867.8 million.

On the balance sheet, total assets rose to K54.481 billion, up from K50.994 billion. Loans and advances to customers increased to K19.716 billion from K18.084 billion. Customer deposits rose to K40.269 billion from K38.199 billion.

Cash flow moved into negative territory. Net cash used in operating activities was K4.337 billion, compared to a K3.250 billion inflow in H1 2025. Cash and cash equivalents ended the period at K3.591 billion, down from K7.032 billion.

Why It Matters

For investors and operators tracking Zambia’s banking sector, the Zanaco numbers show a familiar pattern. Revenue is growing, but bottom-line profit is not keeping pace. That can point to higher costs, tighter margins, or provisioning pressure, even when headline income rises.

The 7% asset growth and higher deposits suggest the bank is still expanding its footprint and balance sheet. The 25.47% capital ratio, which is a measure of how much loss-absorbing capital the bank holds relative to risk, indicates Zanaco has a buffer to keep lending and investing through market volatility.

Zanaco said the capital position follows strategic investments in staff, technology, and marketing. For customers, those spend areas often translate into better digital channels, faster service, and stronger distribution. For the market, the key question is whether those investments improve efficiency and profitability in the second half of 2026.