Zimbabwe’s financial institutions last year defied the challenging operating conditions by posting a 61.06 percent increase in profits to $389 million from $241 million in 2017.
Last year the banking environment was affected by several factors that included limited cash availability, illegal multi tier pricing system, foreign currency shortages and termination of some services that needed hard cash.
While one could therefore expect bad performance for the majority of banks it is surprising that the compiled data from the central bank reveals a rise in profits.
University of Zimbabwe Business Studies Lecturer Dr Nyasha Kaseke says non-interest income, bank charges, including transaction earnings, are some of the factors that have increased profits.
“There is a lot that will have to accrue in terms of the margins to such an extent we are anticipating for more exciting times,” said Dr Kaseke.
While the entire banking sector has been described by the monetary authorities as safe and sound, only one financial institution is reportedly understood to have incurred losses.