NMB record a 63.7% jump in customer deposits

John Tanyanyiwa Staff Reporter

Diversified financial services firm, NMBZ Holdings (NMBZ) recorded a 63.7% increase in customer deposits in the first quarter ended 31 March 2023.

The company informed stakeholders in a first quarter trading update.

“The Bank has witnessed customer deposits grow by 63.7% from ZWL 53.2 billion as at 31 December 2022 to ZWL 87.1 billion as at 31 March 2023”, read the trading update.

The upsurge in customer deposits impacted the company’s balance sheet which saw assets increase by 32.66% from 31 December 2022 to 31 March 2023. Credit lines also contributed to the strong balance sheet.

The increase in deposits is also attributed to the introduction of agency banking, where the company has partnered with the Zimbabwe Post & Telecommunications Company (Zimpost) resulting in the bank’s expansion drive benefiting from the 109 Zimpost branches across the country.

NMB bank’s distribution network has been bolstered with the company now arguably the biggest in the land in terms of physical channel distribution.

By bringing services closer to the people, the bank has come up with a strategy where it is going to further increase its customer base and market share.

The newly introduced money transfer service, NMBRemit, which was launched on the 5th of May 2023 will also benefit from the vast branch network. NMBRemit allows both clients and non-clients to send money across the country with collection points at Zimpost and NMB Bank branches nationwide.

As the bank seeks to expand its portfolio, a new kid on the block, NMB Properties Limited was launched on the 6th of May 2023. The Group received regulatory approval to set up the property subsidiary. The new subsidiary will enable the company to make inroads into the property sector making use of its land and property portfolio to create real value for shareholders.

During the quarter the group reported operating income of ZW$ 15.9 billion as at 31 March 2023, a 613.63% increase prior year figure of ZW$ 2 billion.

A surge in transaction volumes spurred the increase.

The Bank continued to practice prudent lending focusing on quality assets, which has kept the NPL ratio at low levels of 1.43% (31 December 2022- 1.09%).

The flagship subsidiary, NMB bank is well capitalised with the capital adequacy ratio standing at 22.64% as at 31 March 2023 compared to a regulatory minimum of 12%.

The focus of the group going forward will be on diversifying income streams while keeping costs down. Expansion of the digital footprint remains top on the agenda as the group seeks to outshine competitors and stay ahead.

Positive Eye

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