NMBZ registers $1,6m profit

HARARE - Zimbabwe Stock Exchange-listed NMB Zimbabwe Holdings (NMBZ) has registered a $1,6 million profit after tax in the full year to December 31, 2014, up from a loss of $3,3 million recorded in 2013.

Tendai Mundawarara, the outgoing NMBZ chairperson said the group’s tax before profit stood at $2,4 million underpinned by a good loan book and cost-cutting measures.

However, total income for the period slumped four percent to $48 million from $50 million recorded prior year comparative.

“Impairment losses on loans and advances amounted to $5 million for the current period from a prior year of $16 million and the decrease was mainly due to reduced write-offs in the current year,” Mundawarara said.

Interest income declined to $31 million from $33 million while interest expenses also dropped to $12,6 million from $13 million.

Total deposits for the period rose 11 percent to $235 million from $211 million while shareholders’ funds increased by four percent to $45 million.

Total assets grew by 10 percent from $259 483 112 as at

December 31, 2013 to $286 049 034 for the period under review.

“The assets comprised mainly of loans, advances and other assets valued at $203 363 052, compared to $181 316 271 recorded in 2012, investment securities held to maturity at $3 874 525 versus $4 685 471.

“Investment in debentures stood at $4,6 for the period under review, compared to $3,9 recorded in 2013. Cash and short term funds which stood at $54, investment properties at $4,4 non-current assets…” he said.

Gross loans and advances increased by 12 percent from $194,7 million to $217,4 million for the period under review attributed to an increase in loans advanced to civil servants.

This comes as the group’s 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.

The Bank’s liquidity ratio closed the period at 32,38 percent, above the statutory requirement of 30 percent. Going forward, NMB Bank plans to open a new branch in Kwekwe in the second quarter of 2015 and a further two branches are expected to be opened in the third quarter of 2015.

Mundawarara, who served NMBZ for six years, is succeeded by banker Benedict Chikwanha, with effect from March 18 2015.

No dividend was declared for the period.

 

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