RYAN CHIGOCHE
NMBZ Holdings Limited says it will focus more on digitisation after the strategy propelled the listed financial services concern to a 36% growth in profit to ZWL$1.9bn in the year to December 31, 2021 from ZWL$1.4bn achieved in the previous year.
NMBZ’s bank’s digital banking platforms saw over ZWL$170bn worth of transactions achieved during the reviewed period.
Its banking unit also contributed gross income amounting to ZWL$2.3bn in the reviewed period, up 252% from ZWL$0.65bn posted in the prior year.
Board chairman, Benedict Chikwanha, said the group will stick to the digitisation strategy.
“The bank continues to pay special focus on its digitisation strategy which is expected to increase efficiencies resulting in cost reduction. The bank will continue to accelerate the digitisation strategy with the main aim being to provide seamless digital financial solutions to both corporate and individual clients,” Chikwanha said.
He said credit demand was firm in the reported period largely driven by civil servants’ household needs, although the group realised significant growth in their digital banking business.
However, the absence of long term funding negatively affected long term mortgage lending with funding for housing now restricted to short term equity release facilities which is not viable for the consumer.
Operating income for the group increased to ZWL$6.98bn from ZWL$3.4bn, driven by an increase in transaction volumes and values.
Total assets stood at ZWL$29.4bn during the reviewed period, up 67% from ZWL$17.6bn reported in the previous year.
Loans and advances and other assets stood at ZWL$12.4bn in the reported period, up 93% from prior period levels.
Customer deposits and other liabilities grew by 85%, showing significant personal and business inflows as pandemic restrictions were relaxed
In the outlook, group CEO, Gerald Gore said: “The group is setting itself up to take advantage of the opportunities that are presenting themselves in the market. We are poised for growth and diversification which will see us launch a number of new business units in the very near future. I am excited about the prospects and am confident that these initiatives will be of great benefit to our customers and stakeholders.’’
