NMBZ Holdings Limited Reports Elevated Operating Income and Strong Balance Sheet in Q1 2024, Loans and Advances Reach ZWL1.7 Trillion

Published On: August 6, 2024Company: NMBZ Holdings Limited(NMB.zw)
What were the key positive developments for NMBZ Holdings Limited in Q1 2024?
The key positive developments for NMBZ Holdings Limited in Q1 2024 included a USD15 million Trade Finance Transaction Guarantee Facility signed with the African Development Bank, successful migration to a new core banking system, and adoption of various sustainability standards.

Summary

  • The Zimbabwe Stock Exchange has authorized the issue of the Q1 2024 Trading Update for NMBZ Holdings Limited.
  • The trading environment began with high inflation levels that dropped from 6.6% in January 2024 to 4.9% in March.
  • The Reserve Bank of Zimbabwe recalibrated its monetary policy to help stabilize the local currency and improve economic growth. This included the introduction of a new structured currency, the Zimbabwe Gold (ZiG).
  • The bank policy rate was reduced, and the statutory reserve ratio for foreign currency demand deposits was increased to help moderate foreign currency exposures and liquidity.
  • The Group saw several positive developments, including a USD15 million Trade Finance Transaction Guarantee Facility with the African Development Bank, a successful migration to a new core banking system, and the adoption of sustainability standards.
  • The Group reported elevated operating income, diversified product offerings, and a strong balance sheet.
  • Loans and advances amounted to ZWL1.7 trillion at the end of the quarter. Non-performing loan ratio remained low.
  • The Group and Bank maintain an adequate capital adequacy ratio above regulatory requirements.
  • Under the new monetary framework, the local currency has been re-monetized which is expected to bring stability. Inflation is anticipated to stabilize at 2-5%.
  • Key sectors such as mining and tourism are expected to drive economic growth in 2024.

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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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