NMBZ Holdings, NMB
Bank’s holding company, recorded a profit before tax of ZWL74 452 137
for the half-year ended June 30, 2019, resulting in total comprehensive income of
ZWL61 425 194.
This compares with a before-tax profit of ZWL11 757 594 and a total comprehensive income of ZWL9 086 483 in the same period last year.
The Group’s
basic earnings per share was ZWL14,55 cents compared to ZWL2,34 cents per share
for the half‑year ended 30 June 2018.
Briefing
analysts today (Wednesday) on the group’s half-year results, NMBZ chief
executive Ben Washaya said the basic earnings were largely driven by continued
expansion into the broader market segments, revision of lending rates and
charges, reduction in non-performing loans, cost containment measures,
functional currency changes and fair value gains from investment properties.
He said NMB Bank
had continued to open more NMBLite accounts, as its contribution to the
financial inclusion agenda. It had intensified the roll-out of mPOS devices to
small and medium enterprises (SMEs) and sole traders. The take-up, he said,
continued to be encouraging.
He said the
bank’s non-performing loans ratio had come down from 7,43 percent at the end of
2018 to 3,38 percent as at June 30 this year. He attributed this reduction to
aggressive collections and stricter credit underwriting standards.
“The management
of NPLs continues to be a focus area in light of the deteriorating operating
environment and the increasing borrowing interest rates,” he said.
He revealed that
the bank was developing a branch in Victoria Falls for the benefit of residents
and tourists, which should be open for business on Monday next week.
He said
construction of NMB’s new head office should be completed in the last quarter
of the year.
Mr Washaya said NMB
owed 14 million United States dollars in legacy debts to various line of credit
providers. It had transferred the Zimbabwe dollar equivalent of these debts to the
Reserve Bank. The affected credit providers had confirmed they were agreeable
to the legacy debt arrangements with the Reserve Bank.
Summarising the half-year results, NMB chief finance officer Benson Ndachena said total deposits as at June 30 amounted to ZWL480 292 497, a 10 percent increase since the end of December 2018, when deposits stood at ZWL434 957 949.
The group’s
total assets increased from ZWL527 067 596 at the end of December 2018 to ZWL691 641 122
as at June 30 this year.
Operating income
amounted to ZWL97 438 984 in the first six months of the year compared to ZWL29 999
523 at the end of June 2018.
Operating
expenses amounted to ZWL23 929 991, up 42 percent from the ZWL16 820 851
recorded in the same period last year.
