Chronicle Editor
Harare Bureau
THE growing digitisation being experienced across the country is expected to be a huge driver for banking group NMBZ Holding’s earnings in the financial year 2021.
The world over, the Covid-19 pandemic pushed for the quick adoption of digital platforms for services across sectors. Banks have not been left behind.
Brokerage firm, IH Securities, sees this growing trend paying dividends for NMBZ with fees and commission expected to jump by 150 percent.
“It is our view that digital banking fees will continue to drive revenue as the banking experience moves from the brick-and-mortar business model and, therefore, forecast fee and commission income of $2,04 billion for FY21, up from $815, 54 million recorded in FY20,” said IH.
Last year, digitisation played a key role in the banking group’s performance as the market quickly shifted towards online and mobile banking in line with the various levels of lockdowns that were implemented since March 2020.
Chairman Benedict Chikwanha, said the banking firm had launched its digital strategy at the most opportune time and been instrumental in driving business within the Covid-19 circumstances.
The bank recorded significant growth, expansion and improvement in its digital platforms, resulting in enhanced service delivery in addition to value preservation strategies in view of the inflationary environment that prevailed.
“These measures culminated in the group’s remarkable financial performance in spite of the difficult operating environment,” said Chikwanha in a statement accompanying results for the prior financial year.
Total income is projected to grow to $3,51 billion for FY21, up from $2, 67 billion in the comparable period. IH Securities sees operating expenses moderate on assumption that inflation maintains its current downward trajectory.
Deposits are expected to maintain an upward growth trajectory as a result of the bank’s aggressive deposit mobilisation efforts in pursuit of the broadening of its target market segments. For FY20, deposits closed at $3,49 billion from $1,19 billion recorded in the prior year.
The banking sector as a whole is anticipated to scale up operations as inflation slows post covid induced lockdown in the country due to increased activity.
The country is also expecting a bumper harvest this season which will boost the manufacturing sector as well as increase disposable incomes.
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