NMB Holdings’ loan book grows amid drive for credit lines

Nelson Gahadza

Zimpapers Business Hub

NMB Holdings has announced that its drive to mobilise lines of credit saw its loan book grow by 18 percent in the half year to June 30, 2025, from ZiG2,9 billion as at December 31, 2024 to ZiG3,4 billion. The bulk of the book is skewed towards distressed companies and key sectors of the economy.

Group chief executive Mr Gerald Gore said in a statement of financials for the half year that the group is in the process of drawing down on a US$50 million line of credit, which was concluded during the period under review.

“Except for a few companies which have fallen into distress and are being managed, asset quality remains strong, supported by disciplined credit practices and proactive risk management,” he said.

During the period under review, the group generated operating income amounting to ZiG915 million compared to ZiG1,2 billion for the previous period.

In a business review, Mr Gore said NMB Bank’s digital banking achieved a 46,74 percent growth, supported by both USD and ZiG transactions, although the momentum remains weighted towards USD-denominated transactional flows.

“Point-of-Sale (POS) volumes posted strong gains, up 1 114 percent in USD and 92 percent in ZiG compared to the same period in 2024. Card transactions mirrored this pattern, with USD usage increasing by 303 percent year-on-year,” said Mr Gore.

He noted that the pronounced shift towards USD usage presents a timely strategic opportunity to deepen and scale USD-focused digital payment solutions. “To this end, we are progressing with the upgrade of our award-winning digital platform NMBConnect, scheduled for launch in the second half of the year,” he said. He added that the upgrade is expected to deliver enhanced functionality, unmatched user experience, and transactional efficiency.

Mr Gore said the bank has invested significant capital in refurbishing bank branches and modernising the infrastructure to better serve clients. He said branches that were refurbished and reopened during the period include Bindura and Kwekwe branches, which were moved to bigger premises, and the Msasa Branch, which now has a modern look and feel.

“Work is underway to refurbish our MTA centre in order to expand services to our MTA customers and those in Harare Central Business District,” he said.

Mr Gore added that the group’s Virtual Banking platform continues to deliver unmatched convenience, as does its growing agency network. Clients now have access to NMB services in over 200 agencies nationwide.

Mr Gore said the business banking franchise continued to perform well, with steady growth in customer numbers and increased penetration in key sectors such as mining, agriculture, tourism and manufacturing.

“Our foreign credit lines utilisation has grown steadily, supporting clients’ long-term financing needs,” he said.

The group’s microfinance division continues to grow its support to micro, small, and medium enterprises (MSMEs), as well as nano and micro businesses, which remain the backbone of the informal sector. Mr Gore said economic pressures and constrained household incomes have been noted as key risks to this business, and the division maintains prudent credit risk management practices.

“We have invested in systems and put in place structures that will mitigate these risks, as we selectively grow the business,” he said.

For the half-year period under review, Xplug Solutions continued to build on the momentum from last year, further cementing its role as a key enabler of the group’s regional growth strategy. Mr Gore said regional market expansion remains strong, with Xplug now supporting companies in Tanzania, Rwanda, Uganda, Mozambique, South Africa, Zambia, and Malawi.

“Notably, RPA transformation projects were successfully delivered in Tanzania and Uganda, significantly enhancing automation and operational efficiency for our clients. The deployment of our Agency Banking solution and Workflow system in Rwanda has streamlined service delivery for financial institutions. In Mozambique, the rollout of mobile banking channels is in progress, broadening access to digital financial services,” said Mr Gore.

Locally in Zimbabwe, he said the group deployed several impactful solutions, including digital banking platforms, a medical aid system, and customer administration portals. Mr Gore said that in line with the group’s vision to shape the future of digital financial services, Xplug has also championed the implementation of AI by developing Agentic AI solutions and integrating them into business processes.

“This has positioned it as a trusted accelerator in building a digital workforce; one that seamlessly blends AI, automation, and human expertise to drive innovation, efficiency, and scalability for our clients throughout Sub-Saharan Africa,” he said.

The group’s property division, NMB Properties, building on the momentum achieved in 2024, completed an 18-unit cluster development which is on the market, reinforcing the group’s presence in the residential real estate sector. Mr Gore also said construction has commenced on a new cluster housing development in Marlborough, demonstrating the commitment to delivering quality residential solutions.

“Beyond residential projects, NMB Properties is also advancing its industrial real estate, with plans underway for the construction of a 2,500-square-meter warehouse. This diversification underscores the group’s ability to capitalise on opportunities across the property market,” he said.

He added that through strategic partnerships, NMB Properties continues to position the group for sustained growth and value creation in Zimbabwe’s real estate sector.