NMBZ Holdings pre-tax profit
for last year amounted to more than US$27 million, an increase of more than 109
percent over the previous year’s pre-tax profit, which was just over US$13 million.
Profit before taxation for
the year ending December 31, 2018, was US$27 143 275, while for the
year ended December 31, 2017, it was US$13 017 690.
Profit after tax for 2018
was US$21 221 201 compared to US$9 938 826 the year before. Total comprehensive
income for 2018 was US$21 267 632, an increase of 112 percent over the
2017 figure of US$10 029 136.
The group’s banking
subsidiary, NMB Bank, achieved a capital adequacy ratio of 23,25 percent, well
above the minimum required by the Reserve Bank of Zimbabwe, which is
12 percent.
The Bank’s regulatory
capital as at 31 December 2018 was US$74 927 487, considerably higher than the minimum
required regulatory capital of US$25 million.
Total bank deposits
increased by 25 percent from US$348 956 385 as at 31 December 2017 to US$434
957 949 as at 31 December 2018.
In his statement
accompanying the results, NMBZ chairman Benedict Chikwanha identified the main
drivers of the financial results as NMB Bank’s diversification into the broader
market segment, enhanced use of its digital offerings, stricter credit
underwriting standards and containment of non-performing loans.
He said the increase in
deposits was the result of strong deposit mobilisation strategies coupled with
a significant improvement in the market.
Further investment, he
said, was continuously being directed towards the digital channels to enhance
service delivery and accommodate the increased transactional volumes created by
the broadened customer base.
“Our
capitalisation level is adequate to cover all risks and supports the
underwriting of new business,” Mr Chikwanha said.
He said the bank
continued with its intermediation role and support for the productive sectors
as reflected by a 24 percent increase in gross loans and advances from US$211
005 418 as at 31 December 2017 to US$262 335 026 as at 31 December 2018.
The bank had set maximum
limits for investment securities to ensure most of its funds are channelled towards
loans and advances, he said.
Giving an update to financial
analysts today (Thursday), NMBZ chief executive Ben Washaya pointed out that
the positive results had been achieved despite a slowdown in business in the
last quarter of the year, as businesses adjusted to the new policy measures
outlined in the Transitional Stabilisation Programme presented soon after last
year’s national elections.
The healthy profit was achieved despite operating expenses, which stood at US$34 720 428, having increased by 26 percent from the previous year’s US$27 578 347. The increase in expenditure was due to increased transaction processing and operational costs arising from the bank’s digital thrust and general inflationary pressures largely driven by foreign currency shortages.
The bank’s liquidity
ratio closed the period at 41,62 percent, which is above the statutory
requirement of 30 percent
In 2018, the Bank opened
two service centres in Bindura and Chitungwiza and undertook the construction
of a new Head Office along Borrowdale Road, said Mr Washaya.
Presenting the results to
financial analysts, NMBZ chief finance
officer Benson Ndachena said the bank continued its drive to reduce
non-performing loans (NPLs). The NPL ratio stood at 7,43 percent at the end of
the year.
He said assets increased
by 25 percent from US$422 564 352 as at the end of 2017 to US$527 067 596
at the end of 2018, mainly due to a 27 percent increase in investment
securities, a 21 percent increase in loans, advances and other assets, a 10
percent increase in investment properties, an increase of 26 percent in cash
and cash equivalents and a 143 percent increase in property and equipment.
Investment securities
(Treasury Bills and Bonds) increased by 27 percent from US$92 245 425 as at 31
December 2017 to US$117 249 434 as at 31 December 2018 mainly due to some
purchases from both the primary and secondary bond markets.
Basic earnings per share
were 5,43 US cents per share. In 2017 they were 2,58 cents. The dividend per share was 0,96 US cents. The NMBZ
board has proposed a final scrip dividend alternative to the cash dividend. Total
shareholders’ funds and liabilities amounted to US$79 962 313.
