Zimbabwe: Nedbank Records 108 Percent Income Increase From Digital Platforms

NEDBANK Zimbabwe has recorded a 108% revenue increase attributed to digital platforms amid a record profit after tax which shows the institution’s resilience in the face of multiple challenges.

Presenting the bank’s performance for the half year ended June 30 2021, Nedbank’s managing director, Sibongile Moyo said the digital platforms contributed significantly towards revenue.

“A 108% increase in non-funded income from digital channels including point of sale acquiring; and 97% increase in fees, commissions, trading and dealing income,” she said.

The financial services provider has taken advantage of the Covid19 pandemic to prompt a tripling of traffic on social media and at contact centres, where customers can get in touch via telephone, e-mail or SMS.

The bank is one of the few financial institutions which enables customers to undertake diverse transactions digitally.

During the period under review, the bank recorded inflation adjusted profit after tax of $227,7 million and total comprehensive income of $325,1 million. Inflation adjusted operating income for the period was $1,662 billion.

“Net interest income grew by 119% in inflation adjusted terms over the comparative period on the back of increased loans and advances as well as an upward review of Minimum Lending Rate (“MLR”) by the Bank in April 2021,” said Moyo.

However, total revenue decreased by 17 % due to a 92 % reduction in unrealised foreign exchange gains which contributed 64 % of total revenue in the prior year.

Total expenses decreased by 4% to ZWL1.328 billion due to the decrease in the monetary loss charge as the year-on-year inflation rate slowed down to close at 101% as at end of June.

Deposits closed the period at $13,1 billion representing a 4,7% decrease in inflation adjusted terms and 15,05% growth in historical terms from the 31 December 2020 position. Loans and advances grew by 37% as the bank sought to extend credit to support industry.

Added Moyo, “We look forward to a rebound in GDP growth in 2021 as the nation rolls out an effective vaccination program against the novel coronavirus that will have a positive impact on our clients and their businesses.”