• Mon. Sep 25th, 2023

Nedbank Zimbabwe’s ROE more than doubled in FY2022

ByEconomic Times

Mar 9, 2023

By ETimes

Nedbank Zimbabwe says its return on equity more than doubled in 2022, contributing significantly to the group’s “quite a good set of results”.

The uncertainty in the domestic and global economies over the last few months remains unabated, with significantly increased inflationary pressures and volatility across key markets.

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Nedbank Zimbabwe managing director Sibongile Moyo told the Nedbank South Africa analyst briefing that full-year results are subject to approval before their release at month’s end.

“We still have to go through our local regulatory approvals to speak more about Zimbabwe. We have been consolidated in the impressive performance recorded by the Nedbank Africa region. Our contribution as Zimbabwe has been notable in terms of more than doubling our return on equity,” Moyo said.

“Our cost to income ratio in Zimbabwe was below 50%, which was our target, contributing to an overall result that is pleasing in that regard.”

The ratio plays a crucial role in figuring out a bank’s profitability since it provides a clear picture of how effectively the bank is managed; the lower the ratio, the more profitable the bank is.

Half-year profit after tax for Nedbank Zimbabwe rose 631% to $4.8 billion in inflation-adjusted terms from $663.7 million in the corresponding period last year.

Accordingly, total operating income for the half year period was at $16.05 billion, representing 231% growth in operating income over the prior-year comparative period – Harare

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