Nedbank to leverage technological advancements and AI investment
Nedbank Zimbabwe has announced its intention to leverage its technological advancements and investments in generative artificial intelligence (“AI”) for enhanced data analytics, customer insights, and service delivery.
Group managing director Dr Sibongile Moyo, in a statement accompanying the 2024 financial results, affirmed the bank’s commitment to streamlining customer journeys and delivering a market-leading client experience.
She highlighted Nedbank’s strategic partnerships with local players within the fintech ecosystem. These collaborations aim to improve turnaround times in critical customer interactions, such as consumer loan tracking and the automation of client engagements with the bank through feedback loops.
“Our internet banking platforms were enabled for cross-border telegraphic transfers online for both individual and corporate clients. We appreciate our clients for their transition to digital platforms and boast of an 85.3 percent digitally active client base,” she stated.
Dr Moyo also noted the successful launch of the Visa Gold international debit card for all the bank’s USD account holders, providing clients with enhanced convenience and global access, thereby further elevating their banking experience.
“And, as part of our premium offerings for our frequent travellers, the bank now provides exclusive airport lounge access for all Visa Platinum international cardholders in the region,” she added.
Regarding the financial performance, the bank’s total income reached ZiG789.6 million, compared to ZiG461.1 million in the prior year. Profit after tax for the year stood at ZiG199.1 million, down from ZiG413.9 million in the prior year, after accounting for unrealized foreign currency gains and a net monetary loss of ZiG331 million.
“The 2024 performance was spurred by a 27 percent growth in net funded income (NII) following a 142 percent increase in gross loans and advances to ZiG2.3 billion in 2024 from ZiG958.3 million as at 31 December 2023,” Dr Moyo explained.
She highlighted that the bank continued to strategically invest excess liquidity in both local and foreign placements and treasury bills to contribute to net interest income. Non-funded income (“NIR”) from client transactions, excluding unrealised foreign exchange and revaluation gains, grew by 17 percent, reflecting the robust transactional activities on the bank’s client service platforms.
The bank reported that operating costs, excluding impairment provisions and net monetary loss, grew by 18 percent over the previous year. This increase was primarily driven by employee compensation and communication costs.
“The expense growth mirrored the trend in inflation, the impact of the 44 percent ZiG devaluation in September 2024, and the premium on foreign exchange rates applied by suppliers on settlement of bills in ZiG,” Dr Moyo elaborated.
She affirmed that credit quality remained sound, with nonperforming loans (“NPL”) and the credit loss ratio (“CLR”) well maintained at 1.78 percent and 0.32 percent, respectively, in 2024.
The bank concluded by stating that its regulatory core capital stood at ZiG1.3 billion, equivalent to US$51.7 million as of 31 December 2024, which is comfortably above the regulatory minimum capital requirement of US$30 million.-herald
