Nedbank posts ZWG72.54m profit | Business Times

STAFF WRITER

Financial services group, Nedbank Zimbabwe, reported a ZWG72.54m profit in the six months to June 30, 2024, from ZWG561.1m achieved in the prior comparative period, Business Times can report.

 Managing director, Dr Sibongile Moyo, in a statement accompanying the financial results  said the profit after tax was driven by a 50% increase in fees and commissions from client transactions combined with a 27% growth in loans and advances to the private sector and individuals.

She also acknowledged the complex transition in the bank’s core operations.

“This necessitated a change in our functional currency for accounting purposes to USD,” Dr Moyo said.

“This move, he noted, aligned with International Financial Reporting Standards (IFRSs) and took effect from January 1, 2024.

While the bank presents its financial statements in ZWG due to regulatory requirements, Dr Moyo clarified that the hyperinflation accounting applied in 2023 made it difficult to draw direct comparisons with the 2024 financial figures.

However, the overall performance is indicative of the bank’s ability to adapt to Zimbabwe’s dynamic economic landscape.

Dr Moyo  said this success to the bank’s growing client base and increased transaction volumes.

“The growth in international and local payments and our main-banked customer accounts have contributed significantly to this,” she remarked.

Despite subdued trading and dealing income, largely due to reduced foreign currency supply to the interbank market, the bank maintained strong performance in its core operations.

The contribution of unrealised foreign exchange gains was limited to 15 percent of total non-funded income, reflecting the stabilisation of the ZWG currency.

However, the bank faced challenges on the funded income side, which decreased by 6% due to a seven-fold reduction in reference interest rates on ZWG -denominated treasury bills and loans, as announced by the Reserve Bank of Zimbabwe monetary policy.

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