NMB hails economic stabilisation initiatives

Spread This News

By Alois Vinga

LISTED financial services concern, NMB Bank Limited has hailed economic stabilisation efforts employed by monetary authorities saying such efforts have gone a long way to reduce year on year inflation.

Presenting the group’s performance for the full year ended December 31 2021, NMB chairman Benedict Chikwanha said the measures have resulted in economic gains.

“The various economic stabilisation initiatives, including the foreign exchange auction system introduced in June 2020, resulted in a significant drop in inflation with , year-on-year inflation) dropping from a high of 837% recorded in July 2020, to 60.74% as of December 2021,” he said.

Chikwanha said month-on-month inflation averaged 4,05% during the year 2021.

“In 2021, total foreign currency receipts inflows into the economy increased by 53% to US$9,7 billion, a record high compared to US$6,3 billion in 2020.

 “The performance was driven by increased commodity prices, increased capacity utilisation across sectors, international remittances, and gold incentives put in place by the government,” he said.

During the period under review, operating income increased from $3,4 billion to $6,98 billion for the year ended 31 December 2021, largely driven by growth in transaction volumes and values.

Total comprehensive income for the period amounted to $2,25 billion .

The group achieved a basic earnings per share of 463 cents operating expenses at $3,5 billion, were 72% above the 2020 levels, reflecting the effects of inflation and exchange rate depreciation.

The Bank continues to pay special focus on its digitization strategy which is expected to increase efficiencies resulting in cost reduction. Total assets closed the year at $29,4 billion, up 67% 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% reflecting strong personal and commercial inflows following the easing of Covid-19 restrictions.

“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.

” The group will continue to fund and support the productive sectors of the economy as part of our drive to support the growth of the Zimbabwean economy,” added Chikwanha.