NMB Records 39% loan surge

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Business Reporter

HARARE – NMBZ Holdings reported a 39% surge in its loan portfolio  in the quarter to September  30, 2021, to ZWL$7.2bn from ZWL$5.2bn reported in June on the back of aggressive lending to the productive sectors.

Operating income for NMBZ Holdings grew 66% to ZWL$3.9bn in the nine months  to September 30,2021  from ZWL$2.3bn in the six months ended June 30 on the back of a growth in non-funded income driven by the increase in transaction volumes on the bank’s digital platforms.

Customer deposits grew by 38% to ZWL$9.1bn contributing to the growth in income.

The bank’s inflation-adjusted regulatory capital as of 30 September 2021 was ZWL$5.02bn and was above the minimum required regulatory capital of ZWL$25m.

The lender’s company secretary Violet Mutandwa said interest rates remained stable in the period under review allowing the banking unit to continue channelling credit facilities to the wider economy with a special focus on productive sectors.

She said the banking subsidiary continued with its digitisation drive, largely focusing on the customer journey and ensuring that its processes and platforms make access to services as convenient and seamless as possible.

This contributed immensely to the growth in income in the Covid-19 era as the company saw a surge in transaction volumes during the quarter, Mutandwa said.

Mutandwa is hopeful the foreign currency auction system will continue playing its role in stabilizing rate fluctuations.

“The recent firm commitments and pledges by the Government, the Reserve Bank of Zimbabwe and the business community to maintain sound macroeconomic fundamentals which support exchange rate stability are encouraging and will assist in cost management.

“To this end, the banking sector has seen tightening of money supply, upward review of the bank policy rate to curb speculative borrowings, refinement and streamlining of the foreign exchange auction system so that it continues to play its price discovery role among other commitments,’’ she said.

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