- Loans and advances surged with 90% in USD
- 87% of deposits are USD denominated
- Operating Income Increased to ZWG 1.3 billion
Harare- NMB Zimbabwe's loan book expanded significantly, with loans and advances surging 110% to ZWG2.7 billion for the third quarter ended September 30, 2024. This growth was driven by the bank's successful securing of credit facilities including US$10 million facility from British International Investment in July.
The Bank also obtained a US$15 million facility from Proparco early this month to support SMEs and the exporting industries.
90% of these loans were USD-denominated, indicating a strategic focus on foreign currency lending amidst Zimbabwe's prevailing foreign exchange scarcity.
This tactical approach is expected to enhance NMBZ's net interest income and attract new clients seeking USD-denominated credit solutions.
Moreover, deposits exhibited robust growth, increasing 73% to ZWG2.4 billion as of September 30, 2024, with 87% denominated in USD. This uptick in deposits is particularly remarkable given Zimbabwe's historical banking sector challenges and prevailing lack of confidence.
The bank's diversified product suite, increased transaction volumes, and strong balance sheet anchored by USD-denominated assets funded by offshore credit lines drove the positive performance.
NMBZ's operating income rose 10% to ZWL 1.3 billion for the nine months ended September 30, 2024 with total assets increasing by 39% to ZWG 5.5 billion, driven by increases in loans and advances as well as investment securities.
Looking ahead, NMBZ looks to focus on its core business while strategically expanding its footprint both domestically and internationally.
The surge in deposits, despite Zimbabwe's historical banking sector challenges, suggests growing confidence in NMBZ's stability and foreign currency management. It also indicates increasing demand for USD-denominated banking services and effective management of foreign exchange risk.
The rise in USD loans, amidst high loans and advances, demonstrates NMBZ's strategic focus on foreign currency lending, diversification of revenue streams, and enhanced competitiveness in Zimbabwe's banking sector.
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