Nedbank Zimbabwe has said its after tax profit for the first six months to June 30, 2018 rose 61 percent to $4,4 million from $2,7 million reported in the comparable period last year, on the back of increased non-interest revenue.
The financial institution, formerly MBCA Bank, is a subsidiary of South Africa’s Nedbank group.
In the period, the bank’s total non-interest revenue increased by 33 percent from $8,7 million in the previous period to $11,5 million.
Total revenue was up 34 percent to $21,2 million from $16,1 million previously.
But expenditure, excluding impairment charges, surged by 16 percent to $14,6 million from $12,6 million.
“The major lines that contributed to this increase were employee costs and administrative expenses which went up by 14 percent and 16 percent respectively,” said Nedbank Zimbabwe managing director Charity Jinya in a statement accompanying the bank’s interim results yesterday.
“The growth in these expenses was mainly from projects related costs (implementation of the core banking system and the re-branding exercise), employee empowerment and increase in the bank’s distribution channels.”
Total deposits from customers increased 24 percent to $307,2 million from $246,9 million.
Jinya said: “This is in line with the bank’s strategic deposit mobilisation initiatives and account growth”.
The bank’s non-performing loans ration went down by seven percent compared to eight percent reported as at the end of December 2017.
Nedbank Zimbabwe core capital now stood at $58,2 million, way above the required minimum capital level of $25 million.
This is in line with the bank’s capitalisation plan to meet the regulatory capital level of $100 million by 2020.
In the outlook, Jinya said the momentum created by the re-branding exercise and core banking system changeover will continue to create positive results into the future. — New Ziana.
