Almot Maqolo, Staff Writer 
NMB Bank Zimbabwe Limited (NMB) seized properties worth ZWL11,5 billion in 2023 as part of efforts to recover loans from defaulting clients.
The group closed the year 2023 with a loan book amounting to ZWL494,5 billion, with a major emphasis on recovering non-performing loans.
Agriculture, which represents 31 percent of group loans, has been one of the major industries facing difficulties with debt repayment.
Other sectors with substantial loan exposure included distribution at 13 percent, individuals at 17 percent, and services 16 percent.
NMB’s operating income rose to ZWL613,3 billion in 2023 from ZWL201,5 billion in 2022 largely driven by a significant increase in fees and commission income which increased to ZWL228,9 billion in 2023.
“In the current year, the group took over properties valued at ZWL11,52 billion in pursuit of recoveries for loans defaulted,” the company said in its 2023 annual report.
The group said its recoveries division was focused on ensuring maximum recovery from non-performing loans (NPLs) to maintain a healthy balance sheet.
The group has also leveraged its real estate portfolio, integrating repossessed assets into NMB Properties Limited to further improve asset recovery.
By turning distressed loans into productive assets, analysts say the bank has safeguarded its liquidity and enhanced its capacity to provide further lending to key sectors of the economy.
The banking sector has, however, maintained robust credit risk management systems as evidenced by the low aggregate non-performing loans to total loans ratio (NPL ratio).
According to the Reserve Bank of Zimbabwe (RBZ) NPL ratio, the first quarter ended March 31, 2024 at 2,17 percent representing a marginal increase from the 2,09 percent reported as at December 31, 2023.
This is within the acceptable international threshold of five percent.
In the context of Zimbabwe’s challenging economic environment, which has seen fluctuations in exchange rates and inflationary pressures, NMB’s ability to enforce recoveries highlights its financial agility.
NMB’s operating income rose to ZWL613,3 billion in 2023 from ZWL201,5 billion in 2022 largely driven by a significant increase in fees and commission income which increased to ZWL228,9 billion in 2023.
The group achieved profit after tax of ZWL275,6 billion in 2023 compared to ZWL57,7 billion in 2022 representing a growth of 378 percent. The macroeconomic challenges led to a significant increase in operating costs from ZWL91,3 billion to ZWL216,8 billion which was largely in response to the deteriorating exchange rate and inflation pressures.
newsdesk@fingaz.co.zw
