- After tax profit more than doubled by 139%
- Revenue spiked by 61%
- Operating income grew to ZWL 10 billion
Harare- ZSE-listed financial services outfit, NMB Zimbabwe Limited has posted a solid financial performance during the half year ended 30 June 2022 despite massive setbacks from exchange rate volatility, currency instability and retrogressive monetary measures passed by the government during the reporting period.
During the period under review, government hiked bank policy rates by 120 basis points to a record 200% making borrowing expensive while president Mnangagwa partially banned borrowing, a move that cost the banking sector millions of United States dollars.
However, despite the headwinds, the Bank posted a stronger profit after tax of ZWL 1.7 billion from ZWL 715 million recorded in 2021 during the same period. The current after tax profit which gained more from interest income and fee and commission income was a 139% increase from last year.
Turnover soared by 61% to ZWL 9 billion from ZWL 5.6 billion during the same comparable period. This was a result of a solid performance from net foreign exchange gains which shoot by 607% to ZWL 1 billion from ZWL 208 million.
Resultantly, operating income doubled to ZWL 10 billion from ZWL 5 billion during the prior year.
Meanwhile, loans and advances closed the period at ZWL22.83 billion, up 4.34% from December 2021 levels while deposits and other liabilities grew by 4.47% to ZWL 43 billion from ZWL 41 billion in 2021.
“This was largely reflecting the impact of the exchange rate depreciation on USD deposits,” the Bank’s chairperson Benedict Chikwanha said in a statement accompanying the half-ear financial results.
“The main subsidiary, NMB Bank limited remains well capitalized with a Tier 1 capital adequacy ratio of 22.28%. Risk weighted assets stood at ZW$58.26 billion, up 10.15% from December 2021 levels,” Chikwanha said.
“Drawdowns have started on the recently signed EIB EUR12.5 million line of credit while armed with a strong deal pipeline, the Group will continue to engage with providers of funding to raise more lines of the credit.”
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