During the first half of 2022, the macro-economic environment was characterised by increasing inflation and a deteriorating exchange rate.
These were, however, reigned in after the authorities put in place a raft of measures to contain money supply and curb speculative behaviour in the economy.
In the year under review, the bank’s subsidiary continued to make inroads into new markets and cement existing relationships.
The bank entered an agency banking relationship with Zimpost to complement the 13 existing branches, thereby increasing its geographical reach to a total of 119 branches and agencies.
NMB grew its loan book by 382% year-on-year to $46,29 billion.
The agriculture sector composed 26% of NMB’s loan book whilst exposure to individuals decreased from 29% in 2021 to 18% in the year under review.
The bank appears to have maintained a high-quality loan book with non-performing loans ratio decreasing from 1,39% as at FY21 to 1,09% in the current period.
The banking subsidiary had two new offshore funding agreements during the year — a European Investment Bank facility of EUR12,5 million and a Trade and Development Bank line of US$10 million.
These balances were mainly deployed to export facing businesses as a credit risk strategy.
Fee and commission income came in at $10,71 billion driven by digital banking fees, an area in which the bank has built key competencies.
The mobile banking platform saw 216% growth in volumes to 14,7 million transactions.
Fair value gains on investment properties recorded under “other income” were a significant $17,94 billion; this drove bottom line profit after tax earnings to $25,47 billion in FY22, up 766% from prior similar period. 🔗 Read Full Article
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