New Zimbabwe.com

National Merchant Bank transactions up 18 percent

By Alois Vinga


THE National Merchant Bank chief executive, Ben Washaya says that despite the subdued business environment in the country, transactional volumes at the financial institution have registered an 18 percent increase between February and April 2019.

Speaking at the NMB Annual General Meeting Thursday, Washaya said that strategic decisions being implemented were bearing fruits.

“Our number of clients continues to grow. Resultantly, we have in the first quarter recorded increased transactional volumes.

“Despite the subdued business environment, transactional volumes have started picking as we recorded an 18 percent increase in transaction volumes between February and April 2019,” he said.

He revealed that the financial institution, working in partnership with a local technology partner, Near Field Communication, have developed the Tap Card, a first in the market which will be used for low value transactions on public transport, schools and generally across the market.

The technology allows for off-line transactions which are processed in less than 2 seconds. The bank has also deployed a total of 7 000 Point of Sale (POS) Machines into the market and has also introduced a POS called Kagwenya which has been well received by the market, particularly our SME customers.

“Net interest income and non-interest income for the four months to 30 April 2018 were 7 and 22 percent respectively.

“Our net interest income and non-interest income for the period were 7 percent and 22 percent respectively. Resultantly, our operating income was 23 percent,” Washaya said.

At the same time, inflationary pressures pushed operating expenses by almost 37 percent.

In the financial year ending December 31 2018, NMB earned US$29 million through commission and fee income which became one of the entity’s highest incomes from net interest income which raked in US$30 million in the period under review.

Major contributors to the bank charges and commission income category include retail banking and customer fees which injected US$11 million, corporate banking credit related fees raked in RTGS$3 million and digital banking fees which raked in US$14 million.