HomeLocal NewsNedbank Zim posts US$2 million profit in yr 2020

Nedbank Zim posts US$2 million profit in yr 2020

Taurai Mangudhla

Nedbank Zimbabwe has posted a ZW$159 million (US$1,9 million) profit in inflation-adjusted terms in 2020, reversing a ZW$761 million (US$9,1 million) loss in 2019.

In a statement released yesterday, the company said the operating performance was underpinned by non-interest income and cost optimisation. In historical terms, total comprehensive income was ZW$ 1,1 billion (US$13,1 million) in 2020 against ZW$198 million (US$2,35 million) in 2019.

This was after deposits grew 453% in historical terms and 23% in real terms inflation-adjusted to ZW$11,3 billion (US$134,5 million) from ZW$2 billion (US$23,8 million) in the prior year. The bank’s balance sheet grew 18% in inflation-adjusted terms to ZW$14,2 billion (US$169 million).

Nedbank said it registered a customer base and accounts growth with remote onboarding via digital platforms.

Transactions on digital platforms also grew significantly in the period under review with point of sale (POS) value growth to second place market share of all Zimswitch purchases.

“Digital touch points and technology investments made over the reporting period present a solid foundation for an agile business poised for growth,” managing director Sibongile Moyo.

In terms of cost optimisation, Nedbank said it achieved a 12% reduction in operating expenses. The bank said return on equity increased to 135% from 118% over prior year (2019) in historical terms and cost to income ratio closed the year at 43,1% in historical terms.

Its liquidity ratio stood at 108% against 30% prudential limit, while the capital adequacy ratio of 22% was above the 12% prudential limit.

The bank’s shareholder equity of ZW$1,4 billion is equivalent to US$17 million.

“Going forward, we will continue to focus on our clients, the bedrock of our business by providing market-leading client experiences. Management will seek to optimise the balance sheet to preserve capital via hedging strategies to reduce the impact of monetary losses,” Moyo added.

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