Michael Tome, Harare Bureau
Nedbank Zimbabwe Limited posted a profit after tax of $14,3 million for the six months to June 30, 2019 amid economic difficulties being experienced in the country.
The financial institution’s operating income grew to $47,564 million from $21,178 million realised in the comparable period in 2018 as total deposits stood at $915,731 million in the period under review.
Profit before tax was reported at $18,425 million as gross loans and advances grew to $278,1 million.
In a statement accompanying the results, Nedbank chairman Shepherd Shonhiwa highlighted headwinds currently drawing back the company’s profitability thus seeking for clear policy pronouncement for predictability.
“Key headwinds remain to be addressed by the monetary and fiscal authorities whose mitigation efforts are likely to take the rest of the year.
“These are frequent policy changes, lack of adequate funding for businesses, high input costs, fuel and power shortages as well as inadequate infrastructure such as transport,” said Mr Shonhiwa.
“The incessant power outages that have affected the economy since May 2019, unless resolved are likely to continue to markedly retard productivity levels
which are key to the stability of money supply and growth in foreign exchange generation,” said Mr Shonhiwa.
The banking sector has remained generally stable but pressure is mounting for cost containment, given the escalating high inflationary environment and devaluation of the local currency against the USD.
In addition, pressure on capital adequacy ratios is likely to be experienced as a result of the movement in the local currency against the US dollar where banks have exposures to foreign lines of credit.
These factors unless managed effectively may further adversely impact economic progress.