NMB profit plummets

HARARE - Zimbabwe Stock Exchange-listed NMB Holdings (NMB) profit in the half year to June plummeted by 50 percent from $2,6 million recorded last year to $1,3 million.

In a statement accompanying the group’s condensed unaudited financial results for the period under review, NMB chairman Tendayi Mundawarara said the latest results were an improvement on the attributable loss of $3,3 million for the year ended  December 31, 2013.

“This was largely attributed to the efforts made in containing non-performing loans in an increasingly difficult operating environment.

“These results were achieved under a deteriorating economic and operating environment which was characterised by an illiquid market and a general tightening in the economy,” Mundawarara said.

Profit before taxation was $1,8 million during the period under review and gave rise to an attributable profit of $1,3 million.

“Total income for the period decreased by 7,2 percent  from a prior period of $25,1 million to $23,3 million which is split into interest income of $15 million, fee and commission income of $6 million, net foreign exchange gains of $945 309 and non-interest income of $509 579,” Mundawarara said.

Operating expenses increased by 2,5 percent to $13,3 million, driven largely by staff costs, depreciation of property and equipment and amortisation of intangible assets.

Impairment losses on loans, advances and debentures amounted to $1,5 million for the current period from a prior period amount of $1,8 million and the decrease was mainly due to increased security obtained on exposures.

The group’s total assets grew by 1,74 percent from $259 million as at December 31, 2013 to $264 million as at June 30 2014.

“The assets comprised mainly loans, advances and other accounts $179 million, non-current assets held for sale $2 million, investment securities held to maturity $4 million, investment in debentures $4 million, cash and short-term funds $56 million, investment properties $4,3 million  and property and equipment $7 million,” the NMB boss said.

Gross loans and advances decreased by 0,59 percent from $194 million as at  December 31, 2013 to $193 million as at  June 30, 2014 due to conservative lending in line with the worsening default risk in the economy.

Total deposits increased by 1,22 percent from $211 million as at  December 31, 2013 to $213 million as at June 30, 2014. In view of the need to retain cash in the business and to strengthen the statutory capital requirements for the banking subsidiary, the Board did not declare a dividend.

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