NEDBANK Zimbabwe disbursed US$10 million to shareholders for the year ended December 31, 2024, as the regional financial powerhouse, part of a network with a strong southern African footprint, weathered significant headwinds that unsettled markets during the period.
In a commentary accompanying the bank’s financial results, chairperson Shepherd Shonhiwa acknowledged the tough economic environment, worsened by an El Niño-induced drought that disrupted the 2023/2024 agricultural season, and bouts of heightened inflation.
“Despite the significant headwinds experienced in 2024, I am pleased to report that the board has proposed a final dividend of US$0,28 (ZiG7,28) per share amounting to US$7,9 million (ZiG202,5 million) in addition to the interim dividend of US$0,075 (ZiG1,028) per share, which brings the total dividend for the year ended 31 December 2024 to US$10 million (ZiG231,37 million),” Shonhiwa said.
The pay-out came against the backdrop of Zimbabwe’s worsening economic crisis, which entered its 25th year and was marked by a debilitating power crisis and volatility on the exchange rate front.
Yet banks demonstrated resilience, with foreign currency deposits rising by 22,7%, from US$2,42 billion in December 2023 to US$2,97 billion by year-end 2024.
Nedbank reported a total comprehensive income of ZiG789,6 million, up from ZiG461,1 million in the prior comparable period.
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Total assets surged by 98%, underpinned by a 90% rise in customer deposits, which drove a 142% increase in loans and advances.
“Credit quality remained good with non-performing loans and credit loss ratio well maintained at 1,78% and 0,32% respectively in 2024,” Nedbank managing director Sibongile Moyo said.
“The bank reported a liquidity ratio of 48% against a prudential minimum of 30%. Capital adequacy ratio at 27% was well above the prudential guidelines of 12% and return on equity stood at 22%. “Total shareholders’ funds closed the period at ZiG1,5 billion, equivalent to US$56,7 million, recording 104% growth in ZiG, spurred by significant growth in retained earnings from core business operations,” she added.
The bank’s regulatory core capital, at ZiG1,3 billion as of December 31, 2024, exceeded the regulatory minimum capital requirement of US$30 million.
Moyo noted that the prior year’s financial statement figures were not directly comparable to the current period due to differences in accounting methodologies.
“The prior period financial statement numbers are not entirely comparable to the current period because the 2023 numbers were prepared based on ZWL hyperinflation accounting whilst the numbers for the period ended December 31 2024 were based on USD functional currency,” she said.
“Profit after tax for the year was ZiG199,1 million compared to ZiG413,9 million in the prior year after accounting for unrealised foreign currency gains and net monetary loss of ZiG331 million (US$12,83 million) loss of ZiG331 million (US$12,83 million).
“The 2024 performance was spurred by 27% growth in net funded income (NII) following growth in gross loans and advances by 142% to ZiG2,3 billion (US$89,97 million) in 2024 from ZiG958,3 million (US$37,14 million) as at 31 December 2023,” Moyo added.
She said the bank continued to invest excess liquidity in both local and foreign placements and Treasury Bills to contribute to net interest income.
“Non-funded income from client transactions, excluding unrealised foreign exchange and revaluation gains, grew by 17% reflecting the buoyant transactional activities on our client service platforms,” Moyo said.
l Exchange rate as at December 31, 2024: US$1:ZiG25,8
