NMBZ Q1 operating income hits $15 billion

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Listed financial services provider, NMBZ, says its operating income in the first quarter to March 31, 2023 gained by 613 percent year on year on the back of a combination of activities.

Violet Mutandwa, NMB company secretary in a trading update noted; “The Group generated operating income of $15,9 billion for the quarter ended 31 March 2023, signifying a 613,63 percent increase from the $2 billion recorded for the same period in prior year.”

According to Mutandwa, the strong performance is largely driven by increased transaction volumes, increased income generating projects and modest loan book growth.

In the period under review, NMB’s total assets grew by 32,66 percent from the previous quarter funded by increase in credit lines and customer deposits.

“The bank has witnessed customer deposits grow by 63,7 percent from $53,2 billion as at December 32, 2022 to $87,1 billion as at March 31, 2023,” Mutandwa said.

While the bank has realised an increase in business volumes and transactions, the growth is also reflective of the impact of the exchange rate on USD deposits.

Mutandwa added; “The bank continued to practice prudent lending focusing on quality assets, which has kept the NPL ratio at low levels of 1,43 percent, a partial increase from 1,09 percent in the previous quarter.

The bank accelerated its Agency Banking with the Zimbabwe Post & Telecommunications Company (Zimpost) resulting in it being live in 109 Zimpost branches countrywide.

“This partnership positions NMB as one of the biggest Bank in terms of physical channel distribution. The service is aimed at providing real convenience to customers by bringing banking services closer to our customers,” she added.

With this wide network now in place, NMBRemit, a local money transfer service was launched earlier in the month of May enabling both clients and non-clients to send money across the country with collection points at Zimpost and NMB Bank branches nationwide.

During the quarter under review, NMB announced the reopening of Kwekwe Branch as part of the bank’s way to increase its footprint in the market as well as to complement the digital distribution channels.

NMB Bank Limited closed off the year 2022 on a high note with significant achievements that included being crowned the best overall performing bank, runner up in the Financial Inclusion Drive and the most improved organisation from the Contact Centre of Zimbabwe among others. This set a solid foundation for the first quarter of 2023. – Business Weekly