NMB banks on digitalisation drive NMB says transactions on digital platforms keep gaining traction, registering a five-fold growth in 2021.

Enacy Mapakame

Financial services firm, NMBZ Holdings Limited says the group will continue with its digitalisation drive as transactions on digital platforms keep gaining traction, registering a five-fold growth in 2021.

During the full year to December 31, 2021, NMB Bank recorded over $170 billion worth of transactions as the market continues to embrace digitalisation, which has also been accelerated by the Covid-19 pandemic.

Group chairman, Mr Benedict Chikwanha said the division contributed gross income amounting to $2,3 billion in 2021 representing a 109 percent increase from $65 million recorded in 2020.

“The Bank will continue to accelerate the digitization strategy with the main aim being to provide seamless digital financial solutions to both corporate and individual clients,” said Mr Chikwanha in a performance update for the year under review.

He added the digital banking department has been seized with automation and improvement of end-to-end customer journeys, including digitalising the customer account opening processes.   

Among other benefits, this allowed customers to open accounts digitally and transact without the need to visit the branch or interact with the bank’s staff.

“This has made our processes efficient and cost effective while delivering real convenience to our customers.

“Our digital banking platforms saw over $170 billion worth of transactions in 2021, almost five times 2020 levels, as transaction activity recovered and customers favoured digital payment solutions and reduced their reliance on cash and branch,” he said.

During the year under review, NMB’s operating income doubled to $6,98 billion from $3,4 billion largely driven by growth in transaction volumes and values during the period under review.

Total comprehensive income for the period amounted to $2,25 billion from $1,66 billion in the prior year.

The group achieved a basic earnings per share of 463 cents from 338 cents in 2020.

At $3,5 billion, operating expenses were 72 percent above 2020 levels, reflecting the effects of inflation and exchange rate depreciation.

Mr Chikwanha said the bank’s digitization strategy would also help increase efficiencies resulting in cost reduction.

Total assets closed the year at $29,4 billion, up 67 percent from $17,6 billion as at 31 December 2020, funded by strong growth in customer deposits as the banking subsidiary continues to grow its customer base.

Customer deposits and other liabilities increased by 85 percent reflecting strong personal and commercial inflows following the easing of Covid-19 restrictions.

According to the group, its investment property portfolio was valued at $3,5 billion while property and equipment stood at $4,1 billion.

Loans and advances and other assets stood at $12,4 billion as at year end, increasing by 93 percent from prior period levels. “The banking subsidiary maintained a high-quality loan book, closing the year with an NPL ratio of 1,33 percent. 

The Bank maintained a sound liquidity position with a liquidity ratio of 41 percent and this was above the statutory minimum of 30 percent.

The capital adequacy ratio of the banking subsidiary remained strong at 57,48 percent compared to a regulatory minimum of 12 percent.

Mr Chikwanha added the group would continue to fund and support the productive sectors of the economy as part of its drive to support the growth of the Zimbabwe economy. 

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