Harare – MBCA Bank, which is slowly rebranding itself into Nedbank Zimbabwe, says the cash shortages currently impacting the country could weigh on the economy should there be delays in attracting foreign investment and implementing ease of doing business.
The bank, however, said implementation of measures to create confidence and attract multilateral support and foreign direct investment will bode well for sustainable economic development.
The Zimbabwean government, led by new President Emmerson Mnangagwa, is currently on a charm offensive to lure investors and MBCA, which is owned by Nedbank [JSE:NED] South Africa, is hoping to benefit from the Nedbank group’s brand equity.
“The rebranding will also position the bank appropriately against other international and regional banks operating in the Zimbabwean market,” said chairperson Willard Zireva.
Commenting on its results, Zireva said the bank reported a 40% increase in profit after tax for the year ended December 17 2017.
Profit after tax for the period amounted to $7.8m, up from $5.6m, with management attributing the good performance to increased volume of transactions on new products and enhancements to existing products.
Most Zimbabwean banks have benefited from increased transactions forced by cash shortages that have been bedevilling the country since year 2016.
Total deposits also registered a significant growth of 26% to $297.4m in line with the bank’s strategic deposit mobilisation initiatives to support asset growth in the country.
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