PBZ assets hit 2.75tri/- in 2025

ZANZIBAR: PEOPLE’S Bank of Zanzibar (PBZ) assets have grown by 10 per cent to a historic high of 2.75tri/- last year, driven by growth in lending and customer deposits.

PBZ Managing Director Fahad Soud Hamid said over the weekend that the increase from 2.5tri/- in 2024 reflects the bank’s strengthening financial position and its expanded capacity to support lending and economic empowerment.

The managing director said the assets growth were mainly pushed by total lending and financing that climbed up sharply by 28 per cent to 1.55tri/- last year from 1.21tri/- in the previous year, mostly issued as conventional loans and 409bn/- through Islamic financing.

The bank ratio of non-performing loans dropping to 1.95 per cent, well below the regulatory benchmark of 5.0 per cent while investment in government securities rose by 35 per cent to 222bn/- last year compared to 164bn/- in 2024, signalling increased confidence in secure, long-term instruments.

Additionally, customer deposits also increased steadily, increasing by 16 per cent to 2.26tri/- last year from 1.95tri/- in 2024 slightly under onethird through Islamic accounts. The lender profitability also improved, with pre-tax profits rising by 20 per cent to 110.2bn/-, up from 92bn/- the previous year.

Mr Hamid attributed the growth to a 12 per cent rise in conventional lending income, a 55 per cent jump in Islamic financing income and prudent cost control, with operating costs up just 3.0 per cent.

PBZ, owned by the isles government, shareholder equity went up by 27 per cent to 314bn/- from 248bn/- in 2024.

The lender with nearly 50 branches plans to open additional branches in Tanga and Dodoma.

This year key priorities include strengthening financial system security, launching a Corporate Portal to facilitate local and international transactions for large clients and rolling out mobile banking branches, one in Unguja and another in Pemba.