Nedbank bounces back as deposits rise

NEDBANK Zimbabwe bounced back to an inflation-adjusted $159 million profit during the year ended December 31, 2021 as deposits surged while management kept an eye on costs, the lender said Thursday.

Nedbank had slipped to a $761 million loss during the comparable period in 2019.

But an aggressive remote onboarding via digital platforms pushed up its customer base and revenues, as overheads slipped by 23%, according to the bank’s financial statements.

Digital platform transactions volumes also increased, helping the lender make fresh market share inroads on the Zimswitch platform.

“Digital touch points and technology investments made over the reporting period present a solid foundation for an agile business poised for growth,” Nedbank said.

“Going forward we will continue to focus on our clients, the bedrock of our business by providing market leading client experiences. Management will seek to optimise the balance sheet in order to preserve capital via hedging strategies to reduce the impact of monetary losses. The directors assessed the bank’s ability to meet the revised minimum capital requirements in the face of the impact of COVID-19. They are hopeful that the bank will get a positive response from the Reserve Bank of Zimbabwe on its capital plan which is supported by the major shareholder” the statement added.

Nedbank Zimbabwe is a subsidiary of the Nedbank Group holding company listed on the Johannesburg Securities Exchange Limited.

Nedbank Zimbabwe commenced operations as the Merchant Bank of Central Africa Limited in 1956 and converted to a full-fledged commercial bank in 2004 and subsequently rebranded to Nedbank Zimbabwe Limited in 2018.