Online Reporter
Nqobile Bhebhe
Zimpapers Business Hub
NMB Holdings Limited says it remains on a firm growth path despite incurring significant restructuring costs during the first half of the year, as the financial services group continues to pivot towards a digital-first and more efficient operation.
The Group posted a comprehensive income of ZWG98,9 million for the period under review, up from ZWG56,1 million in the prior comparative period.
However, this was weighed down by once-off restructuring expenses amounting to ZWG138,5 million.
“Restructuring expenses of ZWG138,5 million were incurred during the year, primarily related to a change in strategic focus towards a digital and more efficient operation.
“These costs include severance payments and other termination costs. We expect these restructuring efforts to result in future cost savings and improved operational efficiency,” the group chairman, Mr Pearson Gowero, said in the financial results for the six months ended 30 June 2025.
On the balance sheet, NMB’s total assets closed at ZWG7,8 billion, up six percent from ZWG7,4 billion as at December 31, 2024.
The growth was largely funded by increased customer deposits.
Loans and advances stood at ZWG3,4 billion, up from ZWG2,9 billion at year-end, driven by the deployment of foreign lines of credit to exporting firms.
Mr Gowero noted that the group continues to maintain strong risk management practices, noting its credit portfolio remains sustainable.
Liquidity was consistently above the statutory minimum of 30 percent, while the banking subsidiary maintained a capital adequacy ratio of 24,99 percent, double the 12 percent regulatory minimum.
“Our capital remains robust, anchored on USD-denominated assets.
“The banking subsidiary remained adequately capitalised to cover all risks and was compliant with the minimum capital requirement of US$30 million,” he said.
Looking ahead, NMB will deepen investments in technology, people, and processes to strengthen resilience and adaptability in a fast-changing financial landscape.
“We will continue to invest in our people, processes, and technology to enhance our resilience and adaptability in an ever-evolving financial landscape.
“Cybersecurity will remain a top priority, and we will strengthen our defenses to protect our customers’ assets and data.
“The group has fully embraced AI and is now working on incorporating AI in as much of its key processes as possible without compromising customer centricity.”
With the economy projected to rebound to six percent growth in 2025, supported by mining, agriculture, and firming commodity prices, NMB says it is well-positioned to leverage its digital transformation and fundraising capabilities for sustainable growth.
Meanwhile, the bank noted that 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.
It noted that its foreign credit lines utilisation has grown steadily, supporting clients’ long-term financing needs.
“We are 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,” the bank said.
Under its microfinance division, it said it 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.
Economic pressures and constrained household incomes have been noted as key risks to this business and the division maintains prudent credit risk management practices, it added.
