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Harare Bureau
Nedbank Zimbabwe posted ZiG72,54 million after-tax profit in the half-year period to June 2024, underpinned by significant growth in fees and commissions.

Managing director, Dr Sibongile Moyo, in a statement of the group’s financials, acknowledged the complex transition in the bank’s core operations, citing the conversion from the Zimbabwe dollar to Zimbabwe Gold following the introduction of the new currency on April 5, 2024.

“This necessitated a change in our functional currency for accounting purposes to USD,” explained Dr Moyo. This move, he noted, aligned with International Financial Reporting Standards (IFRSs) and took effect from January 1, 2024.

While the bank presents its financial statements in ZiG due to regulatory requirements, Dr Moyo clarified that the hyperinflation accounting applied in 2023 made it difficult to draw direct comparisons with the 2024 financial figures.

However, the overall performance is indicative of the bank’s ability to adapt to Zimbabwe’s dynamic economic landscape.
Nedbank’s profit after tax was driven by a 50 percent increase in fees and commissions from client transactions, alongside a 27 percent growth in loans and advances to the private sector and individuals. Dr Moyo attributed this success to the bank’s growing client base and increased transaction volumes.

“The growth in international and local payments and our main-banked customer accounts have contributed significantly to this,” she remarked.

Despite subdued trading and dealing income, largely due to reduced foreign currency supply to the interbank market, the bank maintained strong performance in its core operations.

The contribution of unrealised foreign exchange gains was limited to 15 percent of total non-funded income, reflecting the stabilisation of the ZiG currency.

However, the bank faced challenges on the funded income side, which decreased by six percent due to a seven-fold reduction in reference interest rates on ZiG-denominated treasury bills and loans, as announced by the RBZ monetary policy in April.