THE Zimbabwean banking sector anticipates a brighter 2024, buoyed by the relative stability witnessed in inflation and currency rates during the latter half of 2023, according to the Bankers Association of Zimbabwe (BAZ).
BAZ chief executive Fanwell Mutogo expressed optimism for the coming year, citing the 2023 positive trends in inflation and exchange rate management.
However, he acknowledged potential challenges arising from unforeseen economic disruptions and regulatory shifts.
“While we’re hopeful for a more stable macroeconomic environment, global events, policy changes, and overall economic conditions could still impact the banking industry’s prospects,” Mutogo told The Financial Gazette.
Addressing the long-standing issue of eroded confidence, Mutogo emphasised the need for a collaborative effort involving the government, customers, and the banks.
This is premium content. Subscribe to read article.
“This upward trend is encouraging,” Mutogo said, “and assuming the current environment persists, we expect it to continue.”
The Reserve Bank of Zimbabwe (RBZ) echoed this sentiment in its latest banking sector report, projecting continued resilience within the industry.
“Banking institutions must continuously adapt and build financial and operational resilience,” the report stated.
The sector posted an aggregate profit of $4,67 trillion for the nine months ending September 30, 2023, compared to $341,28 billion in the same period of 2022.
“This growth,” the RBZ noted, “was primarily driven by non-interest income, particularly translation gains on foreign currency assets and investment properties, as well as fees and commissions.”
On the deposit front, the RBZ reported a continued upward trajectory, with total deposits reaching $16,08 trillion.
This growth was primarily driven by foreign currency-denominated deposits, accounting for 80,49 percent of the total.
newsdesk@fingaz.coSubscribe to The Financial Gazette