HARARE- Currency developments in Zimbabwe over the first 6 months period of 2019 resulted in slowdown in earnings by Nedbank Bank Zimbabwe, which is a member of the JSE listed Standard Bank.
In an half year results update Nedbank Bank said headline earnings from SADC operations came off by 74% to R29 million which was as a result of the Zim operation’s adjusted earnings.
Had Zimbabwe not been included in computation of the regional results, SADC operations would have realised a 21% growth to R87 million in the first half period ahead of the same period last year.
Macroeconomic instability and currency depreciation were picked out as the key drivers of underperformance at the Zimbabwe unit.
The deteriorating exchange rate which previously was pegged at 1:1 has since gravitated southwards and is now at 1:9 which effectively reduces the value of earnings in USD and in rands which is the group’s reporting currency.
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