Harare, (New Ziana) — The Deposit Protection Corporation (DPC) recorded a remarkable financial performance last year, achieving a surplus of over 360 million ZiG, up sharply from just under 28 million ZiG in 2023 and spurred by an improved macroeconomic environment as well as effective institutional management.
DPC board chairman Cannan Dube said this during their Annual General Meeting held in Harare on Thursday, noting that on a historical cost basis, the surplus surged to ZWG363.72 million last year, from ZWG27.89 million in 2023.
When adjusted for inflation, the surplus stood at ZWG123.30 million, down slightly from ZWG187.04 million the previous year, reflecting broader inflation dynamics.
“DPC made significant institutional strides during the period under review. This performance enabled the corporation to fulfill its core mandate of protecting depositors and contributing to the stability of the financial system,” he said.
Total income rose modestly to ZWG264.12 million in inflation-adjusted terms, up from ZWG254.97 million, largely driven by a sharp increase in premium income, which jumped from ZWG157 million in 2023 to ZWG234 million last year, with other contributors including rental revenues and investment returns.
Operating expenses rose from ZWG71.6 million to ZWG84.2 million, which Dube attributed to the impact of business expansion on the corporation’s cost base, despite which he said the DPC maintained a solid financial footing.
Dube acknowledged that the first half of last year was turbulent, marked by significant currency volatility and rising inflation.
He however praised the swift policy responses from monetary and fiscal authorities, which included the introduction of the Zimbabwe Gold (ZiG) currency, foreign currency reserves, and other mineral assets as well as a tightening of monetary policy.
The central bank raised the policy interest rate from 25 percent to 35 percent and enforced stricter statutory reserve requirements to stabilise the economy.
“These interventions brought about greater exchange rate and relative price stability,” said Dube.
He also reflected on the global economic landscape, highlighting its resilience in the face of persistent macroeconomic challenges.
The global economy grew by an estimated 3.2 percent last year, buoyed by easing inflationary pressures, with the International Monetary Fund (IMF) indicating that global inflation declined from 9.4 percent in 2022 to 5.9 percent by the end of last year, creating room for central banks to consider loosening monetary policy and stabilising financial conditions.
Dube reaffirmed the DPC’s commitment to safeguarding depositors and enhancing financial sector confidence, saying the DPC’s strong financial performance last reflects its enduring commitment to sound governance, operational excellence, and supporting Zimbabwe’s financial system.
New Ziana
