Joseph Meza, Chairman of the Board of Directors, Peoples Bank of Zanzibar (PBZ) (left), and Fahad Soud Hamid (right), Managing Director of the Bank, present a cheque valued at TZS10 billion to Dr. Saada Mkuya Salum, Minister for Finance and Planning of the Government of Zanzibar.
The People’s Bank of Zanzibar (PBZ) closed the year 2024/2025 ended July with impressive performance, recording a 24% increase in profit before tax, reaching TZS 92.09 billion, up from TZS 74.06 billion in 2023. According to a statement shared by the bank, this growth was supported by improved income streams, effective cost containment strategies and carefully targeted investments.
By June 2025, profit for the first half of the year reached TZS 48.6 billion, reflecting consistent earnings momentum. “The performance remains strategically guided, with results closely aligned to long-term objectives and reinforced by financial stability,” reads the advisory.
“The Bank entered 2025 with sustained momentum, driven by efficiency gains, disciplined execution and customer trust. This progress has strengthened PBZ’s standing in the market, with industry analysis placing the Bank 6th in profit before tax, total assets and customer deposits, reflecting both improved competitiveness and growing relevance in the Tanzanian banking sector.”
Dividend surge
On 25 August 2025, PBZ handed the government of Zanzibar a whopping TZS 10 billion in dividend, a 43% increase from the amount paid in 2023. Minister for Finance and Planning Dr. Saada Mkuya Salum received the cheque on behalf of the Government of Zanzibar and commended the Bank for its strong performance and stable leadership.
“Congratulations for a job well done,” she addressed the cheerful group which included PBZ board Chairman Joseph Meza, Managing Director Fahad Soud Hamid, directors and members of the management team. “This is a clear sign of financial stability, accountability and high quality of service delivered to your customers, she said.
Farhat Salim Amour (first right, standing), Senior Marketing Officer at People’s Bank Zanzibar, engages with customers at the bank’s branch, exemplifying the institution’s commitment to service excellence and client centric banking.
Customer trust
The Minister’s comment about quality of service was not mere flattery by a government official holding a cheque worth TZS 10 billion plus, it was based on facts. Customer trust in PBZ Bank continues to grow, as reflected in the 13% increase in total deposits in 2024 to TZS 1.95 trillion, up from TZS 1.73 trillion the previous year.
As of mid-2025, deposits reached TZS 2.18 trillion, marking a further 12% increase within six months, a testament to the Bank’s strong reputation and service appeal. Loans and advances beyond supporting customers by meeting their credit needs, responsible lending brings significant benefits to our business, including reduced bad debt volumes and fewer customers falling into arrears.
This, in turn, lowers debt recovery costs and minimises the risk of regulatory penalties. PBZ Bank maintained a balanced and responsible approach to credit growth. Total loans and advances rose by 17% in 2024, climbing from TZS 1.04 trillion to TZS 1.21 trillion. By June 2025, lending further accelerated to TZS 1.47 trillion, representing a 21% increase, driven by robust demand across retail and commercial sectors.
Strengthening balance sheet position
From professional view it is understood that strong balance sheet management isn’t just about checking regulatory boxes – it’s a strategic engine for growth. When executed well, it empowers us to confidently scale up, weather volatility and invest in innovation.
Because of this careful approach, the Bank’s asset base expanded 22% in 2024, increasing from TZS 2.05 trillion to TZS 2.51 trillion. This growth continued into 2025, with total assets reaching TZS 2.70 trillion by mid-year an additional 8% increase, strengthening PBZ Bank’s financial stability and capacity to support future growth.
As to building long term resilience shareholders’ equity rose 29% in 2024, from TZS 192 billion to TZS 248 billion, reflecting retained earnings and capital strengthening measures. By mid-2025, equity further increased to TZS 282 billion, a 23% rise, underscoring the Bank’s continued focus on long-term financial resilience and shareholder value creation.
Bolstering leadership in Sharia-compliant finance
Sharia-compliant banking is important in Muslim-majority territories like Zanzibar because it aligns with the financial and ethical principles of Islam, serving as a faith-based alternative to conventional banking by avoiding interest and speculative transactions.
PBZ Bank reinforced its leadership in Islamic banking, with Sharia-compliant deposits growing by 33% in 2024 and a further 19% by mid-2025, reaching TZS 656 billion. This strong performance highlights the Bank’s commitment to ethical, Sharia-compliant financial solutions and its growing prominence in the Islamic finance sector.
Maintaining sound credit standards to avoid non-performing loans (NPLs), we focus on prevention through rigorous loan underwriting and borrower assessment. This is because NPLs do not only affect us but also borrowers’ credit ratings which complicate their future borrowing attempts. PBZ Bank remains committed to prudent lending practices.
The NPL ratio improved to 2% in 2024, down from 2.5% in 2023. As of mid-2025, the ratio stood at 2.4%, remaining comfortably within regulatory thresholds and reflecting the Bank’s strong risk management framework, even amidst growing credit volumes.
Said M. Said, Head of Banking Operations (left), presents a Certificate of Recognition and Appreciation to Mwinchande A. Ahmed (centre) for outstanding service and accountability. Viwe Ali Juma (right), Director of Human Resources and Administration, looks on.
Bright future
PBZ Bank’s 2024 results and mid-2025 financial performance update highlight a well-capitalized, efficiently run, and customer trusted institution.
With a robust balance sheet, expanding customer base, and innovative product offerings, the Bank is well positioned to capture new opportunities, enhance shareholder returns, and contribute meaningfully to national economic development.
Accounting, Finance & Banking
Email: anusaleh10@yahoo.com
