eBusiness Weekly
Tawanda Musarurwa
HARARE – Nedbank Zimbabwe’s total revenue was up 34 percent to $21,2 million for the six months period to June 30, 2018 from $16,1 million in the prior comparable period on the back of the successful outturn of a number of strategic initiatives implemented during the half-year.
“Strategic initiatives resulted in growth of 26 percent of the bank’s account base and increase of 271 percent in point of sale machines. These initiatives led to a rise in electronic banking platform transactions which contributed to this strong performance,” said Nedbank Zimbabwe managing director Dr Charity Jinya in a report accompanying the results.
The improved bottom-line boosted the group’s after tax profit, which rose 61 percent to $4,4 million from the $2,7 million reported in the comparable period last year.
The financial institution, formerly MBCA Bank, is a subsidiary of South Africa’s Nedbank group.
Non-interest income was a key contributor to the total revenue.
In the period, the bank’s total non-interest revenue increased by 33 percent from $8,7 million in the previous period to $11,5 million.
However, expenditure – excluding impairment charges – rose 16 percent to $14,6 million from $12,6 million.
“The major lines that contributed to this increase were employee costs and administrative expenses which went up by 14 percent and 16 percent respectively,” said the MD.
“The growth in these expenses was mainly from projects related costs (implementation of the core banking system and the rebranding exercise), employee empowerment and increase in the bank’s distribution channels.”
Total deposits from customers increased 24 percent to $307,2 million from $246,9 million.
“This is in line with the bank’s strategic deposit mobilisation initiatives and account growth,” said Dr Jinya.
The bank’s non-performing loans ration went down by seven percent compared to eight percent reported as at the end of December 2017.
Total assets increased by 6, 1 percent to $391,51 million from $369,07 million as at December 2017, attributable to “an increase in net loans and advances to customers which grew by 14, 6 percent and investment in RBZ savings bonds of $70 million.”
The group’s core capital now stood at $58,2 million, way above the required minimum capital level of $25 million, which is in line with the bank’s capitalisation plan to meet the Reserve Bank of Zimbabwe (RBZ) regulatory capital level of $100 million by 2020.
Going forward, the group says it is looking to leverage on the momentum set by the rebranding exercise and core banking system changeover will continue to create positive results into the future.
Added Dr Jinya:
“We look forward to continued improvement of the country’s economic outlook as the country progresses re-engagement with the international community and achieves arrears debt clearance.
“This will form a solid foundation for us to build the Nebank brand equity and to leverage propositions already available at group level.”
