NMBZ Holdings Limited Reports 10% Growth in Export Earnings to USD 7.2 Billion, Despite 9% Decline in Q3 2023 Export Receipts

Published On: June 7, 2024Company: NMBZ Holdings Limited (NMB.zw)
Question: What was one of the main factors contributing to NMBZ Holdings Limited's growth in 2023?
NMBZ Holdings Limited's growth in 2023 was largely fueled by the significant increase in its operating income, which rose from ZWL 201.5 billion to ZWL 613.3 billion, and its profit after tax which also increased significantly.

Summary

  • In 2023, significant policy changes occurred to stabilize the local currency, including an extension of the multi-currency regime until 2030.
  • The economy saw positive growth, with export earnings increasing by 10% to USD 7.2 billion, although prices of some minerals dropped due to global uncertainty, causing a 9% decline in Q3 2023 export receipts.
  • Various actions were taken in response to inflation and currency exchange fluctuations, including the removal of import duties on basic commodities and changes in interest rates.
  • NMBZ Holdings Limited showed growth despite challenges, with operating income rising significantly from ZWL 201.5 billion to ZWL 613.3 billion. The Group’s profit after tax also increased significantly.
  • Operating costs increased due to macroeconomic challenges, but the Group continued leveraging its digital and automation capabilities to maintain cost-effectiveness.
  • The Group remained committed to social sustainability, implementing various measures including Environmental, Social and Governance (ESG) training programs and investing in staff wellbeing.
  • They declared interim and final dividends for the year, which will be paid in USD.
  • Subsidiaries of the Group, including NMB Properties Limited and XPlug Solutions Limited, were established to diversify the banking business, improve customer experience, and support economic growth.
  • Despite challenging business conditions, the Group remains committed to its growth strategy, utilizing technology and digital platforms to serve clients and generate income.

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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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