NMBZ Holdings diversifies, establishes property division
Financial services group, NMBZ Holdings Limited has diversified its operations after establishing a fully-fledged property division, Property Development Company, as it taps into opportunities in the real estate sector.
The new subsidiary is part of the group’s banking unit.
Group chief executive officer, Mr Gerald Gore, said the initiative was in line with the company’s growth strategies.
“In pursuit of our exponential growth aspiration, the group’s diversification thrust gathered momentum.
“The group now has a new subsidiary to add to the bank, namely the Property Development Company,” said Mr Gore in an update for the year to December 31, 2022.
The property division already boasts a solid property portfolio with projects cutting across markets and spread across the country.
The projects include St Ives in Chinhoyi, which comprise 137 medium-density stands, Amalinda in Harare comprising 105 high-density stands, Brokedale in Bindura with 10 by 2 bedroomed core houses and 2 000 planned high-density stands in Nkulumane Bulawayo among others.
The banking division has also diversified its operations after setting up a microfinance division to provide more focused services to individuals and micro businesses.
Similarly, a technology services division was established and is in various discussions with a number of banks in the region for the bank to become their technology partner in driving their digital transformation agendas.
According to the group, this service will enhance foreign currency earnings.
“The new subsidiaries and divisions have opened up new markets for the group and have a clear vision on how to establish themselves as formidable players in their domains.
“Capital allocation was key and the new businesses were capitalised organically. All the group’s subsidiaries are adequately capitalised and capacitated to pursue their strategic goals,” he said.
Meanwhile, the group recorded strong financial performance for the year to December 2022, with operating income almost doubling to $42 billion from $23,9 billion, largely driven by growth in transaction volumes and values.
Profit after tax came in at $12 billion, representing a growth of 69 percent, and basic earnings per share amounted to 3 014 cents.
However, inflation pressures and a deteriorating exchange rate presented challenges on operating costs, leading to an increase in costs by 57 percent. To address this, the group is focusing on revamping processes to increase efficiencies, with the use of robotic process automation being a key initiative.
“NMB Bank Limited continues to focus on extending its leadership in technology and innovation, building trusted relationships, and developing differentiated products and services to create more value for customers. Our entire customer journey is fully digitised, from account opening, transacting and even cash operations,” said the group.”
-herald
