Nedbank Zim posts 225% increase in profit

Harare – Nedbank Zimbabwe Limited has posted a 225% increase in profit after tax to ZWL$14.2 million for the six months period ended 30 June 2019 compared to ZWL$4.3 million recorded in the same period last year.

Managing Director Dr Charity Jinya cautioned that it is important to note that the previous comparative period was reported in United States Dollar at a rate of 1:1 to the RTGS$.

In February 2019 government scrapped the 1:1 exchange rate between the US$ and the RTGS$ and as such it is maybe distortive to compare the prior year numbers with the current year’s numbers on a like for like basis.

The Bank’s operating income grew to ZWL$47.5 from ZWL$21.2 million recorded in the prior year as total non-interest income jumped 189% to ZWL$33.2 million compared to ZWL$11.5 realised in the same period last year.

“Of the total revenue 68% was from non-interest income and while 32% related to net interest income,” Dr Jinya said.

The Bank’s net interest income for the period under review came in at ZWL$14.4 million, an increase of 49% from ZWL$9.7 million recorded in the same period last year.

Total assets during the period under review amounted to ZWL$1.098 billion mainly due to the movement in the exchange rate between the US$ AND ZWL$.

“Of the total assets, 51% (ZWL$555.860 million) comprised cash and cash equivalents while 24% (ZWL$268.761 million) related to loans and advances,” Dr Jinya said.

“Deposits, at ZWL$915.731 million also grew largely, due to the exchange rate movements impact t on the US$ denominated deposits.”

The Bank’s liquidity ratio stood at 82%, which is above the minimum regulatory requirement of 30% while the Non-Performing Loans ratio was effectively managed at 3.58% and Credit Loss ratio at 1.75%.

During the period under review, the Bank launched the Victoria Falls Sawanga branch on 3 July 2019 for the convenience of tourists and local clients in Matabeleland North.

Dr Jinya said the Bank continues to position its digital strategy to satisfy changing client needs and demands.

On the outlook she said the Bank will continue to leverage on the Group initiatives in order to provide enhanced and seamless quality service to its clients.

“The support of our existing and new clients will be key to our future growth,” Dr Jinya said.

Equity Axis News

Raynold Mhotseka

Raynold Mhotseka is a Journalism and Media Studies student at the University of Zimbabwe. He serves as a news writer at financial research firm, Equity Axis where he is currently on attachment. He can be contacted through the following email links, rayjnr.mhotseka@gmail.com and raynoldm@equityaxis.net.

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