• Izwe Loans Zambia Plc has completed its transformation into a diversified, digital-first financial services provider, with profit after tax rising 12% to ZMW195.4 million in 2025
• The company has strengthened its balance sheet, with total equity up 27% to ZMW692.8 million and a Capital Adequacy Ratio above the 15% regulatory minimum
• Izwe's cash generation has improved significantly, with net cash from operating activities surging to an inflow of ZMW170.6 million, enabling debt reduction and dividend payments

Harare – Izwe Loans Zambia Plc has successfully completed its transformation into a diversified, digital-first financial services provider, delivering robust audited results for the year ended 31 December 2025 that validate years of investment in technology, brand refresh, product expansion and geographic reach.

Profit after tax rose 12% to ZMW195.4 million from ZMW174.5 million in 2024, while profit before tax increased 16.2% to ZMW289.7 million, while net interest income, the core drive,  grew 20% to ZMW636.4 million on the back of sustained lending activity and a loan book that helped push total assets 7% higher to ZMW2.49 billion.

Diversification efforts are clearly paying off, net fee and commission income jumped 28% to ZMW21.7 million as non-lending products gained traction.

The standout operational achievement is the dramatic swing in cash generation. Net cash from operating activities surged to an inflow of ZMW170.6 million from a ZMW84.9 million outflow the previous year, reflecting improved efficiency and tighter working capital management. This cash strength funded ZMW50 million in interim dividends to shareholders while allowing the company to reduce interest-bearing liabilities by 4.4% to ZMW1.44 billion, prudent deleveraging move that leaves total liabilities up only 1% at ZMW1.79 billion.

On the balance sheet, total equity strengthened 27% to ZMW692.8 million, underpinned by retained earnings, while capital adequacy ratio remains well above the 15% regulatory minimum, providing a solid buffer for future growth. Earnings per share improved to ZMW1.99 from ZMW1.78.

These numbers come at an opportune moment for Zambia’s capital markets and economy. The Lusaka Securities Exchange All-Share Index posted gains of approximately 65% in 2025, with market capitalisation climbing more than 50%, buoyed by domestic investor appetite.

Broader macro conditions are turning supportive, GDP growth is estimated at 5.2% for 2025 and projected to accelerate toward 5.8-6.1% in 2026, driven by mining output, agricultural recovery and improving electricity generation. Inflation has moderated (year-end 2025 around 11%, trending toward the Bank of Zambia’s 6-8% target band), and monetary easing is under way, creating a more favourable environment for credit demand and margins in the non-bank lending sector. 

For a non-deposit-taking lender like Izwe, which funds itself through borrowings including its listed Medium Term Note Programme on the LuSE, the combination of loan-book growth, revenue diversification, debt reduction and strong cash conversion is particularly powerful. It reduces funding risk, enhances resilience to interest-rate cycles and strengthens the issuer credit profile for existing and potential bondholders.

The results also demonstrate disciplined risk management: the company grew its lending activities without proportionally expanding leverage, a notable feat after several years of high inflation and drought-related pressures.

Management and the Board are understandably upbeat. “Izwe remains focused on executing its growth strategy through product diversification, disciplined prudent risk management and ongoing investment in new financial service channels,” the announcement states.

With the heavy lifting of transformation now behind it, Izwe enters 2026 with a refreshed platform, broader product suite and the operational muscle to capture rising demand for accessible financial services among Zambians. 

That said, risks remain. As a consumer and SME-focused lender, Izwe is exposed to credit concentration, potential rises in non-performing loans if the economic recovery falters, and ongoing infrastructure challenges such as power supply. Currency volatility and any renewed fiscal slippage could also pressure funding costs. 

 Therefore, these results are not just a good set of numbers; they mark the moment Izwe transitions from a turnaround story to a growth compounder. In a market that rewarded financial-services names handsomely in 2025, the company’s strengthened equity base, healthy capital ratios, dividend commitment and strategic positioning leave it well placed to deliver sustainable long-term value to shareholders and debt investors alike. The transformation is no longer aspirational – it is delivering.

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