NMBZ Holdings Limited Reports Strong Financial Performance with Rise in Interest and Commission Income

Published On: September 1, 2023Company: NMBZ Holdings Limited (NMB.zw)
What was the key driver for the increase in the Group's financial performance in the period under review?
The key driver for the increase in financial performance was a significant rise in interest income and continuous growth in fees and commission income. The total assets of the Group also increased due to inflation and movements in the exchange rate.

Summary

  • Operating Environment: In spite of economic challenges, the economy showed signs of resilience and recovery due to various measures implemented. The period saw peaks of inflation and exchange rate depreciation, and timely intervention with fiscal and monetary policies brought about stability.
  • Global Developments: The global economy is expected to slow down in 2023 to 2.1% from 3.2% in 2022, impacting growth across emerging and developing economies
  • Financial performance: The Group recorded an increase in operating income and growth in total assets largely due to inflation and movements in the exchange rate. There was also a focus on cost discipline in the wake of increased inflationary pressures.
  • Capital and leverage: NMB Bank Limited remains well-capitalized with a total capital adequacy ratio of 27.79%.
  • Corporate Social Investment: The Group made valuable contributions to the education sector, benefiting students and communities in need.
  • Digitalization Strategy: The Group introduced various digital initiatives to increase efficiency and reduce costs.
  • Dividend: An interim dividend of ZWL 556 cents per share was declared.
  • Outlook: The domestic economy is projected to grow by 6% in 2023. Continued improvements are anticipated owing to factors like recovery in the agricultural sector, improved power generation, and ongoing infrastructure projects.

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About NMBZ Holdings Limited (NMB.zw)

NMBZ Holdings Limited is a registered financial-services holding company in Zimbabwe; operating in the retail and commercial banking sector aswell as treasury, international banking and corporate finance through its principle subsidiary NMB Bank Limited. A second subsidiary, Steward Holdings (Private) Limited, is an equity holding company. Formerly known as National Merchant Bank of Zimbabwe Limited, NMB Bank Limited was established as a retail banking institution in 1992 by a group of Zimbabwe entrepreneurs who had held senior positions in renowned international financial institutions such as the World Bank and the International Finance Corporation. It was granted a commercial banking license in 1999 which enhanced its funding capacity and extended it product offering. NMB Holdings Limited is listed on the Zimbabwe Stock Exchange

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